Asia markets mixed as U.S. shutdown jitters ripple through the region

Asian equity markets opened with a mixed tone on Wednesday, reflecting cautious investor sentiment amid uncertainty over the U.S. government shutdown and its potential knock-on effects.

Japan slips, tech hubs show resilience
In Tokyo, the Nikkei 225 declined by approximately 1.2 % in early trade, weighed down by inflation worries and signals from the Bank of Japan about a possible shift in policy direction. Meanwhile, markets in South Korea and Taiwan held up better, buoyed by strength in semiconductor and export-linked names, helping offset some of the regional weakness. AP News+1

China’s mainland markets remained closed for their National Day holiday, reducing liquidity and dampening regional momentum. AP News+1

Australia faces pressure amid rate pause and cautious tone
In Australia, the ASX 200 dipped modestly at the open, as the Reserve Bank of Australia (RBA) held interest rates steady at 3.60 % during its meeting. The decision came amid persistent inflationary pressures, prompting the RBA to signal a more cautious stance going forward. Reuters+2news.com.au+2

Investor reaction was mixed: rate-sensitive sectors such as banks came under pressure, while resource and commodity stocks showed relative resilience, benefiting from global demand and commodity price support. news.com.au+1

Cross-market implications and risks ahead
The U.S. shutdown looms large over global markets, raising the possibility of delays to key data releases — notably for September employment and economic metrics — which in turn makes central banks’ policy guidance harder to parse. Reuters+1

For Asia and Australia, the major risks include slowing external demand if U.S. growth softens, and tighter credit conditions if uncertainty persuades investors to adopt a more defensive stance. Conversely, any breakthrough in Washington could spark a rebound in risk appetite across the region.

As the trading day unfolds, market attention will focus on regional economic releases, commodity trends, and developments out of the U.S. that might shift the balance between risk and safety.

Newshub Editorial in Asia/Oceania – 2025-10-01