Asian stock markets closed higher on Monday amid optimism that the end of the historic US government shutdown is near. In China, stock prices rose, led by defensive sectors such as alcoholic beverages and consumer staples, as statistics showed consumer prices were rising.
Tokyo’s Nikkei 225 index rose 1.26% to 50,911.76 points, while Seoul’s Kospi rose 3.02% to 4,073.24 points, led by stocks of banks and insurance companies. In Hong Kong, the Hang Seng Index rose 1.55% to 26,649.06 points, while in mainland China, the Shanghai Composite Index rose 0.53% to 4,018.59 points.
The U.S. Senate on Sunday advanced a measure aimed at reopening the federal government and ending a 40-day shutdown that has kept federal workers on hold, delayed food aid and halted air travel. In a procedural vote, senators approved the House-passed bill, which includes a package of three amended, full-year budgets to fund the government through Jan. 30.
MSCI’s broadest index of Asia-Pacific stocks ex-Japan rose 1.36%. “The possibility of an end to the longest government shutdown in U.S. history is positive for markets. The next step is Wednesday’s House vote to reopen the government this Friday,” said Prashant Newnaha, senior rates strategist for Asia Pacific at TD Securities.
In China, the CSI300 index reversed its initial decline and rose 0.3%, while Hong Kong’s Hang Seng index rose 1.5%. China’s producer price deflation eased in October and consumer prices returned to positive territory, data released on Sunday showed, as the government stepped up efforts to rein in overcapacity and fierce competition among companies.
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