Most Gulf shares slightly higher
Most stock markets in the Gulf ended slightly higher on Wednesday, as the US government shutdown raised concerns about the delay in the release of crucial jobs data, clouding future interest rate trends.
The US government shut down much of its operations as partisan divisions prevented Congress and the White House from reaching a funding deal, setting off what could be a long, grueling standoff that could lead to the loss of thousands of federal jobs.
The shutdown could also delay the release of key economic data, including the non-farm payrolls report due on Friday.
Monetary policy shifts in the US have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Miners, gold stocks power Australian stocks higher
Australian shares advanced on Thursday in a session of broad-based gains led by miners and gold stocks, with positive sentiment bolstered by Wall Street’s performance.
The S&P/ASX 200 index rose as much as 0.7 percent to 8,906.30 points earlier in the session, its highest since September 2, and was up 0.6 percent by 0032 GMT.
The benchmark ended 0.1 percent lower on Wednesday.
Miners led gains on the benchmark for the day by advancing 1.9 percent as copper prices rose. The sub-index hit its highest level since late-December 2023.
Shares of miners BHP, Rio Tinto and Fortescue rose between 0.9 percent and 1.4 percent .
Japan’s Nikkei rises
Japan’s Nikkei share average gained slightly on Thursday after four straight sessions of losses, as chip-related stocks tracked their U.S. peers higher.
The Nikkei rose 0.28 percent to 44,675.96 by the midday break after shedding 2.6 percent in the last four sessions, with some analysts expecting the recovery to be short-lived given the fall in the broader Topix.
Earlier in the day, the Nikkei rose as much as 1.3 percent. The Topix fell 0.72 percent to 3,072.32.
“Retail investors refrain from buying stocks as they are waiting for the shares to fall further,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
“The Nikkei has risen too high. The decline in the Topix index is a real reflection of the market sentiment.”
The Nikkei, which is heavily weighted by chip-related shares, hit a record high last month, helped by gains in chip-related shares. It has risen 12 percent so far this year, heading for a third straight annual gain.
Indian stocks set to open higher
Indian shares are set to open higher on Wednesday, with investors anticipating dovish signals from the Reserve Bank of India’s policy decision to counter risks from US tariffs and H-1B visa fee hike, even as they expect it to hold rates steady.
Gift Nifty futures were trading at 24,765.5 points as of 7:19 a.m. IST, indicating that the benchmark Nifty 50 will open above Tuesday’s close of 24,611.1.
The RBI’s monetary policy decision is due at 10:00 a.m. IST, with nearly three-quarters of economists in a Reuters poll expecting rates to remain unchanged.
The central bank held rates steady at its August meeting, following its surprise, front-loaded 50-basis-point rate cut in June.
“We expect the RBI to hold policy rates, though it remains a close call since inflation is expected to remain benign going forward and lack of a trade deal with the US increases external headwinds to growth,” said analysts led by Sajjid Chinoy of J.P.Morgan.
Sri Lankan stocks rise
Sri Lankan shares closed higher on Tuesday, helped by gains in information technology and consumer staples stocks, as the benchmark index logged its fifth consecutive monthly gain.
The CSE All-Share index settled up 0.5 percent to 21,778.60, rising for eleventh straight session.
Diesel & Motor Engineering PLC and Paragon Ceylon PLC were the top percentage gainers on the CSE All-Share index, rising 21 percent and 19.8 percent, respectively
Sri Lanka’s Colombo consumer price index was up 1.5 percent year-on-year in September after rising 1.2 percent in August, the statistics department said.
China, HK shares log fifth straight monthly gain
China and Hong Kong stocks closed higher on Tuesday, extending their winning streak to a fifth consecutive month, buoyed by optimism over policy support ahead of key holidays.
The blue-chip CSI300 Index rose 3 percent in September, marking its longest monthly rally since October 2017. Hong Kong’s benchmark Hang Seng Index gained 7 percent over the month.
By market close, the CSI300 Index and the Shanghai Composite Index were both up 0.5 percent. The Hang Seng Index gained nearly 1 percent.
Onshore semiconductor shares rose 2 percent after DeepSeek released a new experimental model it says trains more efficiently and handles longer text sequences better than previous versions.
Also supporting sentiment was news that China would deploy 500 billion yuan (USD70.25 billion) in capital to accelerate investment projects.
Gulf markets close mixed
Stock markets in the Gulf ended mixed on Tuesday as lower oil prices tempered growing expectations of further US Federal Reserve rate cuts.
Recent US economic data have had traders pricing in a roughly 89 percent chance of a 25-basis-point reduction at the next Fed meeting in October, according to CME Group’s FedWatch tool.
Investors now await US data on job openings, private payrolls, the ISM manufacturing PMI and the non-farm payrolls report on Friday for further clues on the economy’s health.
Monetary policy shifts in the US have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Saudi Arabia’s benchmark index gained 0.6 percent, extending gains from the previous session, led by a 1.8 percent rise in Al Rajhi Bank and a 3.5 percent surge in Dar Al Arkan Real Estate Development Company.