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Asian markets gained on November 10 as investors grew optimistic that the U.S. government shutdown — now in its 40th day — may soon end. The renewed confidence from Wall Street lifted regional sentiment across Asia.
Asian equities traded higher on Friday morning (November 10), as investors bet on the U.S. government reopening after lawmakers reached a temporary budget deal to end the record-breaking 40-day shutdown.
By mid-session:
Japan’s Nikkei 225 rose 1.0% to 50,766.89,
Hong Kong’s Hang Seng Index gained 0.5% to 26,372.47,
Shanghai Composite inched up 0.1% to 4,000.02,
while markets in Sydney, Seoul, and Manila also posted modest gains.
In contrast, Singapore and Wellington recorded slight losses, reflecting a mixed tone across the region.
Analysts said the broad recovery in sentiment was supported by renewed optimism from Wall Street, following reports that U.S. senators had reached a short-term funding agreement late this week.
According to CNN and Fox News, U.S. senators have reached a temporary deal to fund federal operations through January 2026, potentially ending the 40-day government shutdown, the longest in U.S. history.
The development boosted confidence on Wall Street, which had been under pressure due to concerns about stalled government functions and delayed payments. The positive sentiment quickly spilled over into Asian markets, helping lift shares across the region.
Before the deal, the shutdown had halted several critical services, including air traffic management, federal payrolls, and welfare programs, undermining both consumer confidence and economic activity in the world’s largest economy.
The Congressional Budget Office (CBO) estimated that the extended shutdown could trim U.S. quarterly GDP growth by about 1.5 percentage points, a significant drag on an already slowing economy.
Optimism surrounding a U.S. reopening also fueled gains in technology shares, with AI, semiconductor, and consumer tech stocks in Japan, South Korea, and Taiwan leading the rally.
Fears of overvaluation in tech stocks — particularly in the AI sector — temporarily eased as investors shifted back into growth assets.
In Tokyo, heavyweights such as Sony, SoftBank Group, and Tokyo Electron all advanced, while Samsung Electronics and SK Hynix in Seoul rose 1.2% and 1.5%, respectively.
Analysts said the combination of improving market sentiment and a weaker U.S. dollar has drawn international capital back to Asia-Pacific equities, especially in emerging markets with strong growth prospects.
Naoya Oshikubo, Chief Economist at SuMi TRUST, noted:
“The deal in Washington is a positive step — it removes immediate political uncertainty. Investors are rotating back into Asia’s tech and manufacturing stocks, which are well-positioned to recover once global demand stabilizes.”
Despite the current rally, analysts warn that market risks remain elevated, especially if U.S. economic recovery slows or a tech bubble emerges.
Research from major U.S. institutions shows that AI and semiconductor valuations are currently 20–30% above historical averages, fueling concerns that markets could be entering another overheating phase similar to 2021.
Moreover, the prolonged shutdown has caused a ripple effect across the economy: infrastructure projects delayed, thousands of federal employees unpaid, and consumer spending — which accounts for 70% of U.S. GDP — likely to weaken in Q4.
Such developments could dampen global growth, particularly in export-driven economies such as Japan, South Korea, and Singapore, which depend heavily on U.S. consumer demand.
In Vietnam, stocks traded in the opposite direction of broader Asian markets.
As of 11:17 a.m. (local time) on November 10, the VN-Index edged down 0.42 points (0.03%) to 1,598.68, while the HNX-Index slipped 0.47 points (0.18%) to 259.64.
Analysts attributed the mild decline to profit-taking sentiment and caution ahead of Q4 earnings season.
However, they noted that foreign capital inflows — particularly from exchange-traded funds (ETFs) — have started to return, as expectations for U.S. stability could ease exchange rate pressure and improve the appeal of emerging markets.
The rise in Asian equities on November 10 suggests market confidence is gradually returning after weeks of volatility.
Still, analysts caution that the rebound is largely driven by political optimism, rather than fundamental improvements in economic data.
If the U.S. government officially reopens and the Federal Reserve maintains a stable interest rate outlook, global risk appetite could continue to recover, providing a tailwind for Asian markets into year-end.
However, any delay in Washington’s fiscal progress could reverse the current rally just as quickly.
1. Why did Asian stocks rise on November 10?
Markets were boosted by optimism that the U.S. government shutdown — now 40 days long — may soon end, improving global investor sentiment.
2. Which Asian markets led the gains?
Japan and Hong Kong outperformed, with the Nikkei 225 up 1.0% and the Hang Seng Index rising 0.5%.
3. What risks remain for investors?
Analysts warn of potential overvaluation in tech stocks and slower global growth if the U.S. economy fails to rebound quickly.
4. Why did Vietnam’s stock market move lower while others rose?
Cautious sentiment ahead of earnings reports and short-term profit-taking weighed on the VN-Index, though foreign inflows have started to return.
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