Global Stocks Hover Near Record as US Shutdown Officially Ends – Asia Market Wrap

Global equities held their recent gains, inching closer to record territory after President Donald Trump signed legislation to end the longest government shutdown in US history.

Asian markets and the MSCI All Country World Index fluctuated between modest gains and losses as investors awaited the return of official US economic data, seen as critical for shaping the Federal Reserve’s next policy moves. Futures on the S&P 500 rose 0.2% after the benchmark advanced for four straight sessions on optimism surrounding the shutdown’s resolution. Contracts also pointed to a firmer start for European stocks.

Gold extended its rally for a fifth consecutive day, supported by expectations that the Fed could move toward additional rate cuts once Washington resumes normal operations.

Trump’s signature formally ended a 43-day standoff that disrupted federal services, halted food assistance to millions, and left government employees unpaid for over a month. Federal workers are expected to return to their posts beginning Thursday, though officials warn it may take weeks to clear the backlog of work accumulated since the Oct. 1 closure.

The Japanese yen remained under pressure, trading near 155 per dollar, as markets grew doubtful that the new administration would intervene directly to stabilize the currency. The currency’s continued weakness has drawn comparisons to past episodes that prompted government action.

Oil steadied following its sharpest drop since June, after OPEC reported that global supply exceeded demand sooner than anticipated. Brent crude hovered near $62 a barrel after a nearly 4% slump, while West Texas Intermediate traded around $58. Energy shares in Australia fell in response.

In broader markets, Australian equities slipped and short-term bond yields climbed after stronger-than-expected employment data tempered expectations for additional rate cuts by the Reserve Bank of Australia.