Stocks Rise as Shutdown Deal Hopes Lift Sentiment After Volatile Week – Asia Market Wrap

Stocks rose and Treasuries fell as optimism over a potential deal to end the longest US government shutdown buoyed sentiment after a turbulent week dominated by concerns over stretched artificial intelligence valuations.

The MSCI Asia Pacific Index gained 0.9%, with advancers outpacing decliners by more than two to one. Futures for US and European equities also climbed after the Senate took a key procedural step toward reopening the government. A group of moderate Democrats broke ranks to back the bill, signaling growing bipartisan support to end the record shutdown.

Risk appetite strengthened across asset classes. Commodities from gold and silver to copper and soybeans advanced, while cryptocurrencies also gained. Bonds sold off across the curve, pushing 10-year Treasury yields up nearly four basis points to 4.13%. The yen weakened 0.3% against the dollar.

A resolution to the shutdown would restore access to key economic data such as employment and inflation, providing investors with a clearer picture of the Federal Reserve’s policy outlook. While optimism over a deal has improved market mood, traders remain wary after last week’s sharp selloff in technology shares reignited valuation concerns.

The Senate passed a procedural motion 60–40 to advance the measure, though a final vote and House approval are still pending before it reaches President Donald Trump for signature. Timing remains uncertain, with potential procedural delays and House leaders pledging to give members two days’ notice before reconvening.

Once the government reopens, investors expect to regain visibility on economic conditions after weeks of patchy private data. Conflicting signals last week—weak job cuts data alongside hawkish remarks from Fed officials—left markets uncertain about whether a December rate cut remains on the table.

Futures on the S&P 500 rose 0.8%, while Nasdaq 100 contracts gained 1.3%. European equity futures advanced about 1.5%. In commodities, Brent crude topped $64 a barrel, silver surged nearly 2%, and copper rallied in London. Soybeans led gains among agricultural commodities, climbing as much as 0.7%, with wheat and corn also higher.

Technology shares led the rebound in Asia, with chipmakers such as Taiwan Semiconductor Manufacturing and SK Hynix among the top performers. The sector has remained in focus after the Nasdaq 100 suffered its worst weekly drop since early April.