Markets Rise as Investors Brace for Possible U.S. Government Shutdown

Asian share markets mostly climbed on Monday as investors remained cautious about the potential U.S. government shutdown, which could defer significant economic data, including the September payrolls report. President Donald Trump is scheduled to meet with top congressional leaders to discuss continuing government funding, aiming to avert a shutdown starting Wednesday. This aligns with the day new U.S. tariffs on heavy trucks and other items become effective.

A prolonged shutdown could leave the Federal Reserve without key economic insights during their October 29 meeting. Bank of America analysts suggest the Fed might have to depend on private data for policy decisions if the shutdown extends beyond their meeting. They noted that a brief closure might not severely impact economic growth, reducing it by only 0.1 percentage points each week.

Financial markets have shown resilience to past government shutdowns, and analysts anticipate new quarter purchases will buoy stocks, especially with historical fourth-quarter trends favoring stocks. Key indexes like S&P 500 and Nasdaq futures maintained growth, and the dollar slightly weakened after strong economic data previously supported it. Meanwhile, oil prices and crude flowed again from Kurdistan to Turkey after a 2.5-year halt, impacting commodity markets.

(With inputs from agencies.)