Asian markets traded mostly in red on Thursday as excitement over the end of the United States’ record government shutdown quickly lost steam. With the focus shifting back to the Federal Reserve’s next interest rate decision and mounting fears of a technology sector bubble, investors showed little appetite for risk.Nikkei jumped 88 points or 0.17% to 51,152. Shanghai and Shenzhen also inched higher, adding 17 and 238 points respectively.Meanwhile in Hong Kong, HSI dipped 156 points or 0.58% to 26,766. Kospi also traded marginally down, shedding 2 points at 10 AM IST.US lawmakers late on Wednesday approved a bill to end the 43-day shutdown that had paralysed government operations and delayed key economic reports. Later, US President Donald Trump signed the legislation, officially reopening departments that were shuttered for weeks.But despite the breakthrough, trading sentiment was subdued. Investors are now awaiting the release of data that had been held up during the closure, hoping it will offer clues on the health of the world’s largest economy and help shape the Fed’s policy outlook.Still, the White House said October’s employment and inflation numbers might remain unavailable because data collection was interrupted during the stoppage.“Reopening also doesn’t mean an instant snap-back to normal for the real economy. 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,” wrote Stephen Innes of SPI Asset Management. “The shutdown ends with a vote and a signature; the aftershocks show up in queues, call centres and cash-flow stress far away from the Capitol dome,” AFP further cited the analyst.Market caution was also amplified by concerns that the AI-driven boom in technology stocks has pushed valuations too far. Analysts warned that heavy investments in artificial intelligence could take longer than expected to generate returns, sparking fears of an eventual correction.The Nasdaq slipped for a second straight day, while the S&P 500 also struggled. In contrast, the Dow Jones Industrial Average reached a record close, helped by speculation that investors were shifting money from tech firms into traditional industrial stocks.Oil prices continued to fall after a steep four percent drop on Wednesday, following OPEC’s revised forecast that global crude markets would face a surplus in the third quarter. The group had previously projected a shortfall for the same period. The downgrade, combined with easing tensions in the Middle East and rising output among major producers, has dragged prices lower. The International Energy Agency has also projected record surpluses by 2026.In currency markets, Japan drew attention as the yen slid further. Finance Minister Satsuki Katayama told parliament on Wednesday that “the government is watching for any excessive and disorderly moves with a high sense of urgency.”Since her comments, the currency has weakened to nearly 155 per dollar, fuelling speculation that Tokyo may consider intervention. The decline comes as Japan’s central bank maintains its dovish stance on monetary policy, while US markets stabilise following the government’s reopening.
