Asian Shares Mixed as Markets Shrug Off U.S. Gov’t Shutdown

Asian markets were mixed Wednesday as the U.S. government shutdown loomed, though mainland Chinese markets were closed for the Oct. 1–8 National Day holiday.

Taiwan’s Taiex rose 1.3% on semiconductor buying. (Image: Taiwan Stock Exchange) 

Japan’s Nikkei 225 fell 1.2% to 44,411.26 after the Bank of Japan reported slightly improved business sentiment among major manufacturers, Elaine Kurtenbach reported for the Associated Press (AP).

The BOJ’s quarterly tankan survey reinforced expectations of a rate hike to counter inflation above its 2% target.

Political uncertainty is also weighing on Japan, with the ruling Liberal Democratic Party set to choose a successor to embattled Prime Minister Shigeru Ishiba later this week.

Elsewhere in Asia, South Korea’s Kospi gained 0.8% to 3,450.62, Taiwan’s Taiex rose 1.3% on semiconductor buying, and Australia’s S&P/ASX 200 slipped 0.4% to 8,812.90.

China’s central bank, meanwhile, announced plans for a 1.1 trillion yuan ($160 billion) reverse repo operation on October 9 to boost liquidity.

Markets appeared largely unfazed by the U.S. shutdown, with many investors expecting limited economic and market impact, similar to past shutdowns, Stan Choe and Matt Ott reported for AP.