On Wednesday morning (1 October, 9:28 AM, GMT+7, Bangkok time), indices in Asia Pacific traded mixed while gains were seen on Wall Street, where investors remained largely indifferent to the prospect of an impending U.S. government shutdown.
The U.S. federal government is set to shut down at Midnight on Tuesday stateside, following lawmakers’ inability to strike a deal on temporary funding. The impasse leaves essential departments and services facing temporary closure as Republicans and Democrats failed to bridge their sharp divisions over funding terms.
The Bank of Japan disclosed the results of its third-quarter Tankan survey, a key measure of business sentiment monitored by policymakers. The survey indicated that optimism among large manufacturers edged up to +14 from +13 in the previous quarter, though the figure missed economists’ consensus estimate of +15 in a Reuters poll. Sentiment in the non-manufacturing sector was unchanged, with the index steady at +34. Readings above zero signal that more companies are optimistic than pessimistic about business conditions.
Elsewhere in the region, investors looked ahead to an anticipated interest rate decision from the Reserve Bank of India, which is expected later today.
Meanwhile, stock markets in mainland China and Hong Kong were closed due to a public holiday.
Japan’s NIKKEI slumped by 1.12% to 44,428.9. Australia’s ASX 200 dropped by 0.33% to 8,819.4, while South Korea’s KOSPI rose by 0.84% to 3,453.22.
The U.S. stock markets edged up on Tuesday as the Dow Jones Industrial Average (DJIA) grew by 0.18% to 46,397.89. NASDAQ increased by 0.31% to 22,660, and S&P 500 gained 0.41% to 6,688.46. VIX surged by 0.99% to 16.28.
As for commodities, oil prices settled lower on Tuesday as market participants prepared for a possible supply glut, with expectations that OPEC+ may opt for a larger output increase next month alongside the resumption of oil exports from Iraq’s Kurdistan region via Turkey. Brent crude futures for November delivery closed down 95 cents, or 1.4%, at $67.02 a barrel, while the more actively traded December contract ended at $66.03. U.S. West Texas Intermediate crude also retreated, dropping $1.08, or 1.7%, to settle at $62.37 a barrel.
This morning, Brent futures added 16 cents, or 0.24%, to $66.19 a barrel, and the WTI expanded 12 cents, or 0.19%, to $62.49 per barrel.
Meanwhile, gold futures escalated by 0.59% to $3,896.2 per Troy ounce.
