Global Markets Today: Asian markets mostly opened higher on Friday, mirroring Wall Street’s rally as investors brushed aside concerns over the U.S. government shutdown.
Market participants are watching to see how long the shutdown lasts to gauge its potential economic impact, though past shutdowns in the U.S. have typically had little influence on markets.
Japan’s Nikkei 225 rose 0.42 per cent at the open, while the Topix advanced 0.35 per cent. In contrast, Australia’s S&P/ASX 200 slipped 0.17 per cent.
Hong Kong’s Hang Seng Index was expected to start slightly lower, with futures at 27,273 compared to the previous close of 27,287.12. Markets in China and South Korea remained shut for holidays.
Wall Street’s three main indexes ended at record highs with modest gains on Thursday, lifted mainly by strength in the technology sector, as investors kept a close eye on private labor market data during the second day of the U.S. government shutdown.
The Dow Jones Industrial Average advanced 78.62 points, or 0.17 per cent, to 46,519.72. The S&P 500 added 4.15 points, or 0.06 per cent, to 6,715.35, while the Nasdaq Composite rose 88.89 points, or 0.39 per cent, to 22,844.05.
This marked back-to-back record closes for both the Dow and the S&P 500, while the Nasdaq narrowly missed repeating its record finish from Wednesday.
Weak labor data so far has strengthened expectations that the Federal Reserve will implement two more rate cuts this year, including one in late October. However, the release of the September nonfarm payroll report was postponed due to the shutdown.
Market experts noted that the closure did not come as a surprise, and history suggests such disruptions have generally had little long-term impact on stocks.
(With inputs from agencies)
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