Asian markets up on hopes over shutdown deal, rate cut

Wall Street remains cautious on tech valuations

Despite the positive sentiment in Asia, Wall Street had a mixed session, reflecting persistent concerns over elevated tech valuations following this year’s AI-driven surge. Analysts said the caution suggests investors are reassessing growth prospects after months of extraordinary gains.

US government set to reopen by Friday

After clearing the Senate, a spending bill to reopen the federal government is heading to the House of Representatives and then to President Donald Trump for final approval. Services are expected to resume by Friday.

During a Veterans Day address at Arlington National Cemetery, Trump criticised Democrats for the closure, saying: “We’re opening up our country — it should have never been closed.”

Shutdown’s toll on data and workers

The shutdown, which began on October 1, left a million federal employees unpaid, disrupted food aid, and grounded thousands of flights. It also delayed key economic data, complicating the Federal Reserve’s policy decisions.

“September payrolls should be relatively quick,” said Taylor Nugent of National Australia Bank. “But data where collection was disrupted could take longer, and it’s unclear what approach will be taken for missing figures.”

Job Losses strengthen case for fed cut

Adding to the positive market tone were expectations that the Fed will cut rates again in December. ADP data showed US firms shed about 11,250 jobs per week on average in the four weeks ending October 25.

Outplacement firm Challenger, Gray & Christmas also reported that October layoffs hit a 22-year high, underscoring the pressure on the central bank to ease policy despite stubborn inflation.

Broad gains in Asian markets

Early Asian trade saw advances across Hong Kong, Tokyo, Shanghai, Sydney, Seoul, Singapore, Taipei, Wellington and Manila, with investors buoyed by hopes of policy easing and a US reopening.

Wall Street ends mixed amid sector rotation

In contrast, the Nasdaq ended slightly lower, the S&P 500 barely higher, and the Dow Jones Industrial Average climbed more than 1 percent — signalling a rotation into industrials. Analysts say sentiment toward tech remains fragile amid talk of a possible AI-bubble correction.

SoftBank’s Nvidia exit adds to market Jitters

Investor nerves were further rattled by reports that Japan’s SoftBank sold its entire $5.8 billion stake in Nvidia, without explanation. Nvidia shares fell 3 percent, while SoftBank plunged up to 10 percent in Tokyo trading.

Analysts warn of overheating tech sector

“Valuation concerns have intensified as the S&P 500 has climbed higher throughout the year,” said Fabien Yip of IG. “Investors are questioning whether current price levels can be sustained, particularly for stocks boosted by the AI boom if interest rates remain elevated for longer.