Investing.com - Asian stock markets were mixed to higher on Tuesday, as investors continued to monitor negotiations over a U.S. budget impasse that has kept the federal government shut down since October 1.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Lawmakers must raise the USD16.7 trillion debt limit or risk an unprecedented default.
During late Asian trade, Hong Kong's Hang Seng Index advanced 0.9%, Australia’s ASX/200 Index ended 0.23% lower, while Japan’s Nikkei 225 Index closed up 0.3%.
In Tokyo, the Nikkei erased earlier losses to close marginally higher as the yen weakened against the U.S. dollar, boosting sentiment.
USD/JPY rose to hit a session high of 97.17, moving off the previous day’s two-month low of 96.55. A weaker yen increases the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.
Japanese megabanks were higher with shares of the nation’s largest lender Mitsubishi UFJ Financial Group advancing 0.7%, while Sumitomo Mitsui Financial Group and Nomura Holdings added 1.4% and 1.1% respectively.
Meanwhile, in Hong Kong, the Hang Seng rose sharply as markets in mainland China reopened from a week-long holiday.
Shares in footwear major Belle International Holdings rallied 6.3%, while Esprit holdings jumped 5.7% amid indications the week-long National Day holiday boosted sales at retailers.
China’s Commerce Ministry said retail and catering combined sales increased 14% during the holiday from a year earlier to CNY870 billion.
Investors shrugged off data showed that the Markit/HSBC services PMI for September fell to 52.4 from 52.8 in August.
Elsewhere, in Australia, the ASX/200 Index fell to a four-week low as ongoing uncertainty over the U.S. government shutdown and the upcoming debt ceiling debate weighed on sentiment.
Looking ahead, European stock market futures pointed to a higher open.
The EURO STOXX 50 futures pointed to a gain of 0.2% at the open, France’s CAC 40 futures added 0.2%, London’s FTSE 100 futures indicated a rise of 0.2%, while Germany's DAX futures pointed to an increase of 0.2% at the open.
Official data released Tuesday showed that Germany's trade surplus widened more-than-expected in August, rising to EUR15.6 billion from an upwardly revised surplus of EUR15 billion the previous month.
Analysts had expected the trade surplus to widen to EUR15.1 billion in August.
Later in the day, Germany was to release official data on factory orders.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Lawmakers must raise the USD16.7 trillion debt limit or risk an unprecedented default.
During late Asian trade, Hong Kong's Hang Seng Index advanced 0.9%, Australia’s ASX/200 Index ended 0.23% lower, while Japan’s Nikkei 225 Index closed up 0.3%.
In Tokyo, the Nikkei erased earlier losses to close marginally higher as the yen weakened against the U.S. dollar, boosting sentiment.
USD/JPY rose to hit a session high of 97.17, moving off the previous day’s two-month low of 96.55. A weaker yen increases the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.
Japanese megabanks were higher with shares of the nation’s largest lender Mitsubishi UFJ Financial Group advancing 0.7%, while Sumitomo Mitsui Financial Group and Nomura Holdings added 1.4% and 1.1% respectively.
Meanwhile, in Hong Kong, the Hang Seng rose sharply as markets in mainland China reopened from a week-long holiday.
Shares in footwear major Belle International Holdings rallied 6.3%, while Esprit holdings jumped 5.7% amid indications the week-long National Day holiday boosted sales at retailers.
China’s Commerce Ministry said retail and catering combined sales increased 14% during the holiday from a year earlier to CNY870 billion.
Investors shrugged off data showed that the Markit/HSBC services PMI for September fell to 52.4 from 52.8 in August.
Elsewhere, in Australia, the ASX/200 Index fell to a four-week low as ongoing uncertainty over the U.S. government shutdown and the upcoming debt ceiling debate weighed on sentiment.
Looking ahead, European stock market futures pointed to a higher open.
The EURO STOXX 50 futures pointed to a gain of 0.2% at the open, France’s CAC 40 futures added 0.2%, London’s FTSE 100 futures indicated a rise of 0.2%, while Germany's DAX futures pointed to an increase of 0.2% at the open.
Official data released Tuesday showed that Germany's trade surplus widened more-than-expected in August, rising to EUR15.6 billion from an upwardly revised surplus of EUR15 billion the previous month.
Analysts had expected the trade surplus to widen to EUR15.1 billion in August.
Later in the day, Germany was to release official data on factory orders.