Hong Kong – Asian stock markets were mostly flat on Thursday as excitement over the end of the record 43-day U.S. government shutdown faded, shifting investors’ attention back to Federal Reserve interest rate decisions and concerns about a possible tech bubble.
U.S. lawmakers on Wednesday night approved legislation to end the shutdown — the longest in U.S. history — which had closed key government services and delayed important economic data releases.
While President Donald Trump is expected to sign the bill, the relief on global markets was short-lived. Traders now await the resumption of key reports, including those on jobs and inflation, which the Fed will review before deciding whether to cut interest rates next month.
However, the White House warned that some data, including October’s jobs and consumer price figures, might still be delayed due to disruptions in government operations.
“Reopening doesn’t mean an instant snap-back to normal for the real economy,” said Stephen Innes of SPI Asset Management. “When you starve a system of staffing and pay for six weeks, the backlog doesn’t vanish just because a bill passed at 8 pm.”
Tech Bubble Fears Weigh on Sentiment
At the same time, investors are becoming uneasy about rising valuations in the tech sector, fueled by this year’s AI-driven rally. Some analysts warn that the surge in artificial intelligence investments may have gone too far, with profits taking much longer to materialize.
The Nasdaq has slipped for two straight days, while the S&P 500 has also shown signs of strain. The Dow Jones Industrial Average, however, managed to close at a record high on Wednesday, suggesting a rotation from tech into industrial stocks.
Mixed Picture Across Asia
That uneven performance carried into Asian trading:
- Hong Kong, Sydney, Seoul, Singapore, Taipei, Manila, and Wellington all declined.
- Tokyo’s Nikkei 225 edged up 0.2% to 51,166.78, while Jakarta and Shanghai were flat.
Oil Slips on Oversupply Fears
Oil prices continued to fall, extending Wednesday’s 4% plunge, after OPEC’s latest monthly report predicted an oversupply in the third quarter — a sharp reversal from last month’s forecast of a deficit.
With Middle East tensions easing and output rising among major producers, the market remains under pressure. The International Energy Agency (IEA) has also projected a record oil surplus in 2026.
- West Texas Intermediate (WTI): down 0.3% at $58.29 per barrel
- Brent crude: down 0.3% at $62.55 per barrel
Yen Weakens Further, Intervention Possible
Meanwhile, Japan’s Finance Minister Satsuki Katayama said the government is closely monitoring the yen, which continues to weaken. She told parliament that Tokyo is watching for “any excessive and disorderly moves with a high sense of urgency.”
The yen has since dropped further to around 155 per U.S. dollar, raising speculation that authorities could intervene to support the currency. The weakness follows dovish remarks from the Bank of Japan, which dampened expectations for another rate hike.
Key Market Figures (as of 02:30 GMT):
- Tokyo – Nikkei 225: up 0.2% at 51,166.78
- Hong Kong – Hang Seng: down 0.1% at 26,894.91
- Shanghai – Composite: flat at 4,000.55
- Dollar/Yen: 154.90 (up from 154.80)
- Euro/Dollar: $1.1585 (down slightly)
- Pound/Dollar: $1.3118 (down from $1.3129)
- Euro/Pound: 88.32 pence (up from 88.25)
- New York – Dow Jones: up 0.7% at 48,254.82 (close)
- London – FTSE 100: up 0.1% at 9,911.42 (close)
While traders welcomed the end of the U.S. shutdown, lingering uncertainty over the Fed’s rate path, tech stock valuations, and oil supply risks kept markets cautious heading into the weekend.
