Emerging Markets: Asian stocks rise on hopes of end to US government shutdown

United Overseas Bank

10/11/2025 05:46

Asian stocks largely up with exception of Singapore, Philippines

Indonesia stocks hit record high

Traders eyeing Malaysia Q3 GDP on Friday

By Shivangi  Lahiri

Nov 10 (Reuters) - Indonesia's equities scaled a record high on Monday, while those in South Korea advanced more than 3% to trade a few points below a lifetime high, as markets globally gained on optimism that the prolonged U.S. government shutdown may soon end.

The MSCI indexes of equities in emerging Asia .MIMS00000PUS and in broad Asia excluding Japan .MIAPJ0000PUS jumped more than 1% each. Another gauge of global EM equities .MSCIEF advanced over 1% to a two-week high.

The U.S. Senate on Sunday prepared to vote on a measure combining short-term funding through January 2026 with three full-year spending bills, aiming to end the 40-day government shutdown.

This followed remarks from Senate Majority Leader John Thune a day earlier that bipartisan negotiations to end the shutdown were showing progress.

"While the reopening restores critical services and eases economic uncertainty, the rebate plan remains contingent on congressional approval and sufficient tariff revenue, leaving its timing and feasibility still in question," said Tony Sycamore, market analyst at IG Australia.

Indonesia's benchmark index .JKSE touched a record high, rising as much as 1%, while equities in Taiwan rose almost 1%, slightly shy of their earlier record peak of 28,552.76 points.

Meanwhile, South Korea's KOSPI index .KS11, one of the top performers this year, jumped over 3%, almost recouping losses from last week, and was set for its strongest trading session since early April.

The stock index had posted losses last week, tracking a U.S. tech selloff tied to OpenAI-related declines and renewed doubts over lofty AI valuations.

"While some of the headwinds that weighed on markets last week have now eased, this is unlikely to relieve investor concerns about AI spending versus payback, which intensified last week," Sycamore added.

Stocks in Kuala Lumpur .KLSE rose as much as 0.9%, hitting their highest level in over a month.

Bucking the trend, Philippine equities .PSI reversed early gains to slip around 0.2%, while Singapore's benchmark index .STI fell as much as 0.8%, dragged by losses of over 1% in DBS Group DBSM.SI and United Overseas Bank UOBH.SI.

Asian currencies rose marginally, with the exception of South Korea's won KRW=KFTC, rising over 0.5%.

Indonesia's rupiah IDR= and Malaysia's ringgit MYR= rose around 0.1% and 0.2% respectively.

Investors now await Malaysia's third-quarter GDP data, due at the end of the week.

HIGHLIGHTS:

** BOJ saw growing case for near-term rate hike, October meeting summary shows

** FBI chief visited China to talk fentanyl, law enforcement, sources say

** South Korea special prosecutor indicts ex-President Yoon for additional charges, Yonhap reports

** China halts ban on gallium, germanium, antimony exports to U.S., but controls remain

Asia stock indexes and currencies at 0452 GMT
COUNTRY
FX RIC
FX DAILY %
FX YTD %
INDEX
STOCKS DAILY %
STOCKS YTD %
Japan
JPY=
-0.29
+2.17
.N225
0.95
28.86
China
CNY=CFXS
+0.01
+2.52
.SSEC
-0.03
19.23
India
INR=IN
-0.03
-3.46
.NSEI
0.25
8.09
Indonesia
IDR=
+0.12
-3.42
.JKSE
0.21
18.82
Malaysia
MYR=
+0.22
+7.30
.KLSE
0.62
-0.80
Philippines
PHP=
+0.24
-1.18
.PSI
-0.21
-11.97
S.Korea
KRW=KFTC
+0.47
+1.22
.KS11
3.22
70.08
Singapore
SGD=
-0.06
+4.88
.STI
-0.62
17.87
Taiwan
TWD=TP
+0.15
+5.75
.TWII
0.93
21.16
Thailand
THB=TH
-0.15
+5.96
.SETI
0.01
-6.94

Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

Asian stock markets https://tmsnrt.rs/2zpUAr4

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Saad Sayeed)

 ((shivangi.lahiri@thomsonreuters.com))