Asian stocks rise on hopes of end to US govt shutdown

BENGALURU (Nov 10): Indonesia's equities scaled a record high on Monday, while those in South Korea advanced more than 3% to trade a few points below a lifetime high, as markets globally gained on optimism that the prolonged US government shutdown may soon end.

The MSCI indices of equities in emerging Asia and in broad Asia excluding Japan jumped more than 1% each. Another gauge of global EM equities advanced over 1% to a two-week high.

The US Senate on Sunday prepared to vote on a measure combining short-term funding through January 2026 with three full-year spending bills, aiming to end the 40-day government shutdown.

This followed remarks from Senate Majority Leader John Thune a day earlier that bipartisan negotiations to end the shutdown were showing progress.

"While the reopening restores critical services and eases economic uncertainty, the rebate plan remains contingent on congressional approval and sufficient tariff revenue, leaving its timing and feasibility still in question," said Tony Sycamore, market analyst at IG Australia.

Indonesia's benchmark index touched a record high, rising as much as 1%, while equities in Taiwan rose almost 1%, slightly shy of their earlier record peak of 28,552.76 points.

Meanwhile, South Korea's Kospi index, one of the top performers this year, jumped over 3%, almost recouping losses from last week, and was set for its strongest trading session since early April.

The stock index had posted losses last week, tracking a US tech selloff tied to OpenAI-related declines and renewed doubts over lofty AI valuations.

"While some of the headwinds that weighed on markets last week have now eased, this is unlikely to relieve investor concerns about AI spending versus payback, which intensified last week," Sycamore added.

Stocks in Kuala Lumpur rose as much as 0.9%, hitting their highest level in over a month.

Bucking the trend, Philippine equities reversed early gains to slip around 0.2%, while Singapore's benchmark index fell as much as 0.8%, dragged by losses of over 1% in DBS Group and United Overseas Bank.

Asian currencies rose marginally, with the exception of South Korea's won, rising over 0.5%.

Indonesia's rupiah and Malaysia's ringgit rose around 0.1% and 0.2% respectively.

Investors now await Malaysia's third-quarter gross domestic product data, due at the end of the week.

Read more at The Edge Malaysia

Reference : The Edge Malaysia