Asian Shares Climb As U.S. Senate Advances Bill To End Shutdown

Asian stocks advanced on Monday after the U.S. Senate voted 60-40 to advance legislation ending the longest-running government shutdown, which entered its 40th day on Sunday.

The bipartisan bill would fund most federal agencies through January and guarantee back pay for federal employees affected by the closure.

Sentiment was also underpinned after weekend data showed Chinese producer price deflation eased in October, while consumer prices returned to positive territory.

China’s Shanghai Composite Index rose 0.5 percent to 4,018.60 as the inflation data helped ease deflation worries.

Data showed Chinese consumer prices unexpectedly rose 0.2 percent in October after a 0.3 percent decline in the previous months. Analysts had expected no change. Producer prices shrank 2.1 percent last month, marking the softest decrease in 14 months.

Some analysts have cautioned that the surprise uptick in CPI was mostly boosted by October’s national day holiday spending and could be temporary.

Hong Kong’s Hang Seng Index surged 1.6 percent to 26,649.06 as technology stocks rebounded from last week’s sell-off on valuation concerns.

Japanese markets ended sharply higher, led by gains in the technology sector. The Nikkei 226 Index jumped 1.3 percent to 50,911.76, while the broader Topix Index settled 0.6 percent higher at 3,317.42.

SoftBank Group rallied 2.6 percent, Tokyo Electron surged 4.3 percent and Advantest added 3.8 percent, although automaker Honda Motor slumped 4.7 percent after cutting its annual earnings forecast.

Seoul stocks soared on renewed optimism over AI and expectations of tax cuts. The Kospi spiked 3.0 percent to 4,073.24.

Samsung Electronics rallied 2.8 percent and SK Hynix surged 4.5 percent after Nvidia CEO Jensen Huang said that the semiconductor giant is experiencing “very strong demand” for its state-of-the-art Blackwell chips.

Hyundai Motor, Doosan Enerbility and HD Hyundai Heavy Industries rose 2-3 percent.

Australian markets ended notably higher amid a strong rally in gold, energy and bank stocks. The benchmark S&P/ASX 200 Index climbed 0.8 percent to 8,835.90, notching its best single-day gain in nearly a month. The broader All Ordinaries Index closed 0.9 percent higher at 9,109.40.

Earlier in the day, Reserve Bank of Australia Deputy Governor Andrew Hauser stated that the central bank aims to curb inflation with restrictive policy and that interest rates may drop by late 2025.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index inched up by 0.1 percent to 13,617.48.

The dollar softened in Asian trading, helping lift gold prices nearly 2 percent to $4,080 an ounce. Oil prices also opened the week on a firm note.

U.S. stocks rebounded from the day’s lows to end mixed on Friday as new economic data added to worries of an economic slowdown.

A survey from the University of Michigan revealed that consumer sentiment has neared its lowest level on record in November due to the ongoing federal government shutdown.

Markets came off their lows after top Senate Democrat Chuck Schumer offered to provide Democratic support for passage of a short-term funding bill to reopen the government in exchange for Republican support for a one-year extension of enhanced Obamacare tax credits.

The Dow edged up by 0.2 percent and the S&P 500 added 0.1 percent, while the tech-heavy Nasdaq Composite slid 0.2 percent, pressured by weakness among artificial intelligence stocks.