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Asian markets experienced narrow trading Tuesday morning as investors anxiously awaited developments in the United States, where the federal government is nearing a budget deadline that could trigger a shutdown.
Japan's benchmark Nikkei 225 inched down less than 0.1% to 45,023.48, while Hong Kong's Hang Seng was virtually unchanged, rising less than 0.1% to 26,624.16.
The Shanghai Composite index showed a modest gain of 0.4% to 3,878.88.
South Korea's Kospi also edged up nearly 0.2% to 3,436.25, with Australia's S&P ASX 200 adding 0.1% to 8,872.40.
Analysts like Stephen Innes, managing partner at SPI Asset Management, noted that the market seems to have 'flogged the government shutdown story from every conceivable angle,' yet the narrative persists with the clock ticking down.
While past shutdowns have had minimal market impact, concerns remain that a prolonged stalemate could delay the release of critical economic data like jobs and inflation figures.
Meanwhile, Wall Street finished higher on Monday, with the S&P 500 adding 0.3% and the Nasdaq composite climbing 0.5%, largely due to a recovery in Big Tech stocks like Amazon and Microsoft.
The overall market optimism is still tied to expectations for the Federal Reserve to continue cutting interest rates, a key factor that has propelled US stocks to record highs since April.
In commodity trading, Gold topped $3,850 per ounce, continuing its record run amid rate cut expectations and inflation worries, while benchmark US crude and Brent crude both saw small declines.
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