The Asian stock markets had a day of ups and downs, waiting for news on the American front: therefore the fear of a 'shutdown' by the US government following the tug of war between President Obama and the opposition. With the midnight ultimatum approaching, the confrontation between the parties does not seem to show signs of concluding. And even if the budget fight ends on a positive note, there are still disagreements about raising the debt ceiling today at $16,7 trillion.
On the corporate front, Honda Motor, the automaker that generates 80% of its sales abroad, grew by 1,9% in Tokyo. Nippon Steel & Sumitomo Metal, the world's largest steelmaker, rose 2,4% after promising accelerated cost-cutting and delaying any decision on increasing capacity. Conversely, Newcrest Mining, Australia's largest gold producer, plunged 2,3% as gold bullion futures prices fell.
The MSCI Asia Pacific index was up 0,3% at 138.94 as of 11:18 am in Tokyo, after falling 0,2 percent. Among the operators there are those who show optimism: “Even if the politicians allow the 'shutdown', this will only be temporary – explains Angus Gluskie, chief investment officer of White Funds Management in Sydney -. People want to see this problem solved and the data from Asia is improving. This can lead to optimism among investors."
Japan's Topix advanced 0,8 percent on rising business confidence. In addition, Prime Minister Abe could announce a US$61 billion economic package. South Korea's Kospi gained 0,6%, while Singapore's Straits Time jumped 0,9 percent. Financial markets in Hong Kong and China were closed today.
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