Asian markets are growing due to the end of the U.S. government shutdown

Shares rose in Asia on Monday after President Donald Trump temporarily re-opened the U.S. government. Japan was the main regional outlier, as the Nikkei 225 index  lost 0.4% with uncertainty over China-U.S. trade talks bringing a lull in buying sentiment. Hong Kong’s Hang Seng index HSI, +0.03% gained 0.4% while the Shanghai Composite index  climbed 0.4% and the smaller-cap Shenzhen Composite rose 0.2%. The Kospi in South Korea edged 0.4% higher. Markets in Southeast Asia were mostly higher. Australia’s markets were closed for a national holiday.

There was muted reaction in U.S. markets on Friday to news that Trump and congressional leaders had reached a deal to reopen the federal government for three weeks while talks continue over Trump’s demands for money to build a wall along the U.S. border with Mexico. Trump announced the agreement to break the 35-day impasse as delays at airports and widespread disruptions heightened the urgency to end the partial shutdown. However, uncertainty persists since Trump almost immediately threatened another shutdown or emergency action if he does not get a “fair deal.”

Talks aimed at resolving the impasse over Chinese technology ambitions and other issues are due to resume in Washington later in the week, led by the U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He. Analysts are forecasting progress in redressing the trade imbalance between the world’s two largest economies, perhaps staving off further hikes in punitive tariffs imposed by both sides, but they expect gaps to remain on key problems such as China’s blueprint for state-led development of leading technologies.

Asian markets mostly rise after U.S. shutdown ends, MarketWatch, Jan 28