Stocks, Gold Extend Rally as US Shutdown Nears End: Markets Wrap
(Bloomberg) — Asian stocks advanced for a second consecutive day as progress toward ending the record-long US government shutdown lifted sentiment, sparking a cross-asset rally from commodities to cryptocurrencies.
MSCI’s regional stock gauge rose 0.5% with chipmakers such as SK Hynix Inc., Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. among the gainers. Almost two stocks rose for every one that declined in the gauge, which is rebounding after posting its worst weekly loss since August.
US stocks rose Monday and the MSCI All Country World Index had its best day since late June as the White House expressed support for the bipartisan deal to end the shutdown — a key development that makes it likely the government reopens within days. Separately, President Donald Trump also floated the idea of paying $2,000 tariff “dividend” to US citizens.
The optimism spread beyond stocks into other markets as well, with a gauge of commodity prices rising to the highest level since August 2022. An index of the dollar inched higher after three days of declines, while gold and Bitcoin continued to climb. In the absence of cash trading, Treasury futures edged lower, extending the losses from the prior session.
The cross-asset moves signaled that investors were willing to return to riskier areas of the market after the recent selling in technology stocks, driven by concerns over lofty valuations. Many are betting that reopening the government will restore the flow of key economic data on jobs and inflation, providing greater clarity on the Federal Reserve’s policy path.
“Markets are right now going through a bit of a consolidation phase,” Leon Goldfeld, JPMorgan Asset Management’s Asia Pacific head of multi-asset solutions, said in a Bloomberg TV interview. “Fundamentals, as we look in 2026, remain relatively good.”
A stopgap funding bill that would end the shutdown was on track to pass in the Senate Monday night. Trump on Monday expressed support for the bipartisan deal.
While investors piled on to the riskier corners of the market, bonds declined Monday. Treasuries are also facing a demand test from this week’s auctions totaling $125 billion. The bond market will be closed Tuesday for Veterans Day.
Read: Dollar Carry Trades Set to Trounce World’s Booming Stock Markets
Commodities also rallied, with aluminum advancing alongside copper and other industrial metals. Aluminum, which reached a three-year high a week ago, has been one of the strongest performers on the London Metal Exchange in recent months, with investors weighing the impact of Chinese capacity curbs at a time of resilient demand.
Elsewhere, Japanese Prime Minister Sanae Takaichi aims to use her first stimulus package to jump-start the economy and initiate a new growth strategy through investment in key industries.
Indian assets will also be in focus as Trump indicated he would reduce the tariff rate on Indian goods “at some point,” and that the US was “pretty close” to a trade deal with New Delhi.
Back to the US government reopening, historical precedent from the 2013 shutdown suggests that September’s employment report could be among the first to hit the wires, potentially within three business days of reopening, according to Jim Reid at Deutsche Bank.
Assuming the government reopens and statistics start moving again, Fed officials will still be confronted with data compiled via retroactive surveys and other methods — if the figures are published at all. And while several private-sector reports on the job market are helping to fill the void of official data, alternatives to government inflation figures are harder to come by and more limited in scope.
Corporate News:
Warren Buffett, the billionaire investor who turned an aging textile mill into a conglomerate, said he’s “going quiet,” marking the end of an era for one of the business world’s most-watched investing gurus. CoreWeave Inc. lowered its annual revenue forecast after suffering a delay fulfilling a customer contract, marking a setback for a company that is racing to keep up with the artificial intelligence boom. Gemini Space Station Inc., the crypto exchange founded by Tyler and Cameron Winklevoss, reported a steeper loss than analysts anticipated in its first earnings release since going public. The European Commission is exploring ways to force European Union member states to phase out Huawei Technologies Co. and ZTE Corp. from their telecommunications networks, according to people familiar with the matter. Shares of Chinese electric vehicle-maker XPeng Inc. jumped as much as 10% in Hong Kong, following gains in its American Depositary Receipts. The company held its AI Day on Nov. 5.
Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 10:39 a.m. Tokyo time Nikkei 225 futures (OSE) rose 0.4% Japan’s Topix rose 0.3% Australia’s S&P/ASX 200 was little changed Hong Kong’s Hang Seng rose 0.2% The Shanghai Composite was little changed Euro Stoxx 50 futures rose 0.5% Currencies
The Bloomberg Dollar Spot Index rose 0.1% The euro was little changed at $1.1552 The Japanese yen fell 0.2% to 154.41 per dollar The offshore yuan was little changed at 7.1244 per dollar The Australian dollar was little changed at $0.6530 Cryptocurrencies
Bitcoin rose 0.7% to $106,370.26 Ether rose 1.7% to $3,600.81 Bonds
Japan’s 10-year yield was unchanged at 1.690% Australia’s 10-year yield was little changed at 4.40% Commodities
West Texas Intermediate crude fell 0.3% to $59.94 a barrel Spot gold rose 0.6% to $4,139.38 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson and Abhishek Vishnoi.
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