Asian Market Reactions After US Shutdown Ends: The effect of the end of the 43-day shutdown in America is now visible in the global markets. A mixed trend was seen in domestic and international markets. There was a decline in the Indian market on Thursday morning, while there was growth in some places and weakness in some places in Asian markets.
condition of asian markets
- Japan’s Nikkei: Trading at 51,152 with a gain of 88 points (0.17%).
- Shanghai (Shanghai Composite): In the green with a gain of about 18 points.
- Shenzhen (Shenzhen Composite): Trading with a strength of 238 points.
- Hong Kong’s HSI: slipped by 156 points (0.58%) to 26,766.
- Kospi of South Korea: Weak with a slight decline of 2 points.
Shutdown ends in America
The US Parliament on Wednesday passed a bill ending the 43-day shutdown. Due to this, all those departments of the government which were stalled for several weeks were reopened. President Donald Trump signed the bill and gave it formal approval.
However, there is still an atmosphere of caution among investors as they are now waiting for the employment and inflation data for the month of October. The market is now keeping an eye on the next interest rate policy of the US Federal Reserve. Investors are expecting that if economic activities appear sluggish, the Fed may cut interest rates in the near future.
Uncertainty due to lack of data
The White House has said that employment and inflation data for October will not be released because data collection was halted during the shutdown.
Because of this, at present investors will not be able to get clear signals on the real condition of the American economy.
Amidst the shutdown and data uncertainty, the US technology sector is also being impacted. Market analysts say that investors have now become more cautious about high-value tech stocks.
impact on indian market
The Indian stock market made a weak start on Thursday. Sensex opened with a decline in early trade. Nifty was also trading in the red. Experts say that global uncertainty, dollar strength, and FII selling are keeping pressure on Indian markets.
The end of the shutdown in America may be a matter of relief, but lack of data, uncertainty about the Fed’s decision and weak sentiment in the tech sector have forced the Asian and Indian markets to adopt a balanced but cautious approach for the time being.
Also read: Indian rupee collapsed against the US dollar, know how much it fell during early trading
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