HONG KONG: Most Asian markets rose for the second day in a row Tuesday (Nov 11) as United States lawmakers edged towards ending a record government shutdown.
The prospect of an end to the Washington standoff, which moved into its forty-first day Monday, came amid a revival of demand for tech giants despite growing fears of an AI-fuelled bubble.
Senators on Capitol Hill passed the compromise budget measure on Monday night after a group of Democrats broke with their party to side with Republicans on a Bill to fund departments through January.
It is hoped the Bill will then pass the Republican-held House of Representatives and head to Donald Trump’s desk, with some suggesting the government could reopen Friday.
“It appears to us this morning that our long national nightmare is finally coming to an end, and we’re grateful for that,” House Speaker Mike Johnson told reporters Monday.
And the US president told reporters in the Oval Office that “we’ll be opening up our country very quickly”, adding that “the deal is very good”.
Investors have welcomed the developments, having grown increasingly concerned about the impact of severe disruptions of food benefits to low-income households, and of air travel heading into the Thanksgiving holiday.
It has also meant key official data on a range of things, including inflation and jobs, has not been released, leaving traders to focus on private reports for an idea about the economy.
The lack of crucial data has also meant the Federal Reserve has been unable to gauge properly whether or not to cut interest rates at its next meeting in December, keeping investors guessing.
“Reopening would not only boost sentiment, but also open the way for data releases, which could provide more insight into the health of the US jobs market and, more broadly, the US economy ahead of next month’s Federal Reserve interest-rate decision,” Fiona Cincotta, senior market analyst at City Index wrote in a commentary.
Source: CNA
