Asia-Pacific markets traded mixed Tuesday after Wall Street gains on revived artificial intelligence optimism and growing hopes that the U.S. government shutdown will end soon. On Monday stateside, Nvidia stocks jumped 5.8% to lead gains on the S&P 500. Other tech stocks rallied, including Google parent Alphabet, which advanced 4%, and Microsoft, which added 1.9% to end its eight-day losing streak. Japan’s benchmark Nikkei 225 index climbed 0.91%, while the Topix index was 0.52% higher. AI-related stocks were among the top movers, with conglomerate SoftBank adding 3.57% and chipmaker Renesas Electron jumping 4.35%.
Stocks closed higher on Monday after Senate lawmakers took a critical step towards a potential deal to end the historic U.S. government shutdown. The Dow Jones Industrial Average climbed 381.53 points, or 0.81%, to end at 47,368.63. The S&P 500 gained 1.54% to settle at 6,832.43, while the Nasdaq Composite advanced 2.27% to finish at 23,527.17. Nvidia, Broadcom and other artificial intelligence bull market leaders led the gains as a possible end to the shutdown put investors in a risk-taking mood again. Microsoft shares also rose 1.9%, snapping an eight-day losing streak — its longest daily slide since 2011. Those stocks led the broader market lower last week as those on Wall Street grew worrisome about elevated valuations in the AI trade. Investors continue to monitor lawmakers’ negotiations to pass a federal funding bill that would end a shutdown.
Gold prices rose in Asian trade on Tuesday, seeing some demand amid growing uncertainty over U.S. trade policy and interest rates, with recent strength in the dollar doing little to deter bullion. Increased risk appetite, as U.S. lawmakers moved closer to ending the country’s longest ever government shutdown, also did little to deter gold, as markets also fretted over the shutdown’s economic impact. Spot gold rose 0.6% to $4,142.14 an ounce, while gold futures for December rose 0.7% to $4,148.92/oz by 23:57 ET (04:57 GMT). Investors remained largely pinned to gold even as progress towards ending a long-running U.S. shutdown helped improve risk appetite, albeit marginally. The yellow metal rebounded sharply to back above the coveted $4,000/oz level this week, largely shrugging off pressure from a stronger dollar.
Oil prices dipped in early Asian trade Tuesday, trimming gains from the previous session as oversupply concerns outweighed optimism over a potential resolution to the U.S. government shutdown. Brent crude futures fell 13 cents, or 0.2%, to $63.93 a barrel by 0100 GMT. U.S. West Texas Intermediate crude was at $60 a barrel, also down 13 cents, or 0.2%. Both benchmarks gained around 40 cents in the previous session. The longest government shutdown in U.S. history could end this week after a compromise that would restore federal funding cleared an initial Senate hurdle late Sunday, though it was unclear when Congress would give its final approval.
The Senate on Monday night passed a bill to fund the federal government through January and end the longest shutdown in U.S. history. The bill, which passed 60-40 with support from a handful of Democratic senators and nearly all Republicans, will be sent to the House of Representatives. If it passes the House, the bill will head to President Donald Trump to be signed into law. Trump earlier Monday said that he supports the funding deal, which was negotiated between Republicans and a gang of moderate Senate Democrats nearly six weeks after the shutdown began on Oct. 1. House Speaker Mike Johnson told his Republican conference earlier Monday that he wanted GOP House members to begin traveling to Washington, D.C., for a vote on the deal. House members were told that votes on the deal could begin by 4 p.m. ET on Wednesday.
After President Donald Trump’s recent meeting with Chinese leader Xi Jinping, there is hope for U.S. farmers that the soybean business may be on the way back. At the China International Import Expo last week, Illinois soybean farmer Scott Gaffner said he came to Shanghai to save his China business. “We want to make sure that our soybeans are getting exported to China because it’s a very important market to us,” Gaffner, who is a member of the U.S. Soybean Export Council, told CNBC. He said the Gaffner Family Farm typically sells 40% of its annual soybean exports to China, but as he arrived in Shanghai, that number this year was zero. As part of the trade arrangement discussed between Trump and Xi in the South Korean port city of Busan at the end of October, China lifted retaliatory tariffs on some agricultural products. But it has maintained a 13% tariff on U.S. soybeans.
Federal Reserve Governor Stephen Miran on Monday advocated for further interest rate cuts as a way stave off a potential economic softening ahead. In a CNBC interview, the central bank official held to his belief that the Fed should be moving at an even more rapid pace than its traditional quarter percentage point reductions. He advocated, as he has at the previous two Federal Open Market Committee meetings, for a 50-basis point, or half percentage point, reduction, though he said there at least should be a quarter-point easing. “Nothing is certain. We could get data that would make me change my mind between now and then,” Miran said. “But failing new information that’s made me update my forecasts, looking out in time, yeah, I would think that 50 is appropriate, as I have in the past, but at a minimum 25.”
China is preparing measures to ease the flow of rare earths and other critical materials to the U.S. military, the Wall Street Journal reported on Tuesday, citing people familiar with the plan. China plans to establish a “validated end-user” system to exclude companies with ties to the U.S. military from receiving its rare earths, while fast-tracking shipments to other, civilian firms, the WSJ reported. The VEU system will allow China to follow through on President Xi Jinping’s recent pledge to U.S. President Donald Trump to resume the flow of rare earths to the world’s largest economy. Such a system could make importing Chinese materials even tougher for U.S. companies with civilian and defence clients.
Tesla’s sales in China dropped to 26,006 vehicles in October, their lowest in three years, as the U.S. electric vehicle maker struggles with tepid demand in the hyper-competitive market. Sales fell 35.8% from a year earlier, down from September’s figure of 71,525 when Tesla began deliveries of the Model Y L, a longer-wheelbase and six-seat version of its best-selling Model Y SUV until now only available in China. Its exports of China-made vehicles rose to a two-year high of 35,491 units last month, however, data from the China Passenger Car Association showed on Monday. Tesla’s share of China’s EV market shrank to just 3.2% in October, down sharply from 8.7% the previous month and its lowest in more than three years. Tesla’s poor performance in the world’s largest auto market follows dismal sales last month in European countries such as Germany, Spain, the Netherlands, and the Nordics.
U.S. President Donald Trump on Monday demanded air traffic controllers return to work as travellers endured another day of flight cancellations, which the administration ordered to manage staff shortages during the government shutdown. Trump’s comment came after the U.S. aviation system has suffered serious disruptions in recent days as air traffic controller absences soared while they work without pay. Some are absent as they need to work second jobs or cannot afford child care. An airline trade group said 1.2 million customers on Saturday and Sunday had flights delayed or cancelled due to air traffic issues. Threatening to curtail the pay of any controller who did not return to work, Trump said he would award those who have not taken time off during the 41-day shutdown $10,000 bonuses and would welcome the resignations of the rest.
Paramount Skydance on Monday fell short of Wall Street estimates for revenue in the first quarterly results for the combined company since the completion of the $8.4 billion merger. The company said it will also cut about 1,600 jobs as part of a strategic review, in addition to the 1,000 employees it laid off in late October. It reported revenue of $6.7 billion for the third quarter, compared with estimates of $6.97 billion, according to data compiled by LSEG.
Shares of Metsera fell over 15% in early trading on Monday, after the weight-loss drug developer accepted a sweetened offer from Pfizer to end a fierce bidding war between the pharma giant and Danish rival Novo Nordisk. U.S. drugmaker Pfizer said late on Friday it had clinched an up to $10 billion deal for Metsera, in a blow to Novo as the Danish group tries to claw back lost ground against U.S. rival Eli Lilly. Metsera accepted Pfizer’s offer, citing U.S. antitrust risks with Novo’s bid that it had previously called superior. The Danish obesity drug behemoth said on Saturday it would exit the race. "Pfizer effectively had the upper hand throughout — because as long as they matched whatever Novo offered, they were guaranteed the asset," said BMO Capital Markets analyst Evan Seigerman. Under the terms of the final deal, Pfizer has agreed to pay $65.60 per share upfront, and up to $20.65 per share additionally contingent on the success of its pipeline of drugs, valuing Metsera at up to $10 billion. Metsera shares were down 15.2% at $70.58 and Pfizer fell 1.4% to $24.09.
Shares in Novo Nordisk rose on Monday after the Wegovy maker lost out to Pfizer in a $10 billion bidding war for U.S. biotech Metsera, as investors had viewed its offer as too complex. The Danish drugmaker also came under increased scrutiny over governance as Norway’s sovereign wealth fund said it would abstain when Novo shareholders vote this week on a new board. Pfizer said late on Friday it had clinched a deal for Metsera, an obesity drug developer, dealing a setback to Novo Nordisk as it contends with rival Eli Lilly in the competitive weight-loss drug market. Novo had started the bidding war in late October with an unsolicited offer a month after Metsera and Pfizer agreed a deal. Metsera cited U.S. antitrust concerns in rejecting Novo’s bid, which it had previously deemed superior. Novo confirmed on Saturday it would withdraw from the race.
Ast Spacemobile Inc reported third quarter results that fell short of analyst expectations, though the company highlighted over $1 billion in contracted revenue commitments as it prepares for commercial service rollout. The space-based cellular broadband provider posted a third quarter loss of $0.45 per share, missing the analyst consensus of $0.21 per share. Revenue came in at $14.7 million, below the $21.87 million analysts had expected. The revenue was primarily driven by gateway deliveries and U.S. Government contract milestones. Shares edged up 0.2% in after-hours trading Monday. Despite the earnings miss, AST SpaceMobile maintained its second-half 2025 revenue guidance of $50 million to $75 million, in line with the analyst consensus of $59.55 million. The company reported a strong liquidity position with $3.2 billion in pro forma cash, cash equivalents, restricted cash and availability under its ATM facility.