Asian shares moved higher on Tuesday, while gold extended its record rally as investors focused on the risk of a U.S. government shutdown. Such a closure could delay the release of key jobs data that markets closely follow.
The Australian dollar strengthened after the Reserve Bank of Australia left interest rates unchanged, as expected. Oil prices slipped on signals of higher supply from OPEC+. At the same time, China’s manufacturing sector contracted for a sixth consecutive month. In Washington, U.S. Vice President JD Vance said the government appeared “headed to a shutdown” after stalled budget talks between President Donald Trump and Democrats.
A shutdown would pause the release of critical labor data, including this week’s non-farm payrolls report. That shift puts more attention on the JOLTS report covering August job openings, due later Tuesday. Analysts expect openings to hold near 7.18 million.
Markets showed resilience despite uncertainty. MSCI’s broadest Asia-Pacific index outside Japan rose 0.3% and is on track for a 5.3% monthly gain. Japan’s Nikkei added 0.1% after early losses, while China’s CSI300 advanced 0.2%, marking its fifth straight month of gains — the longest streak since 2017.
Currency markets also moved modestly. The U.S. dollar slipped to 148.46 yen, the euro held steady at $1.1724, and the Australian dollar rose 0.5% to $0.6605.
Economists warned that an extended U.S. government shutdown could leave the Federal Reserve without vital economic data when it meets on October 29. Analysts say the Fed’s interest rate path depends heavily on labor market figures. Without payrolls data, policymakers could face greater uncertainty.
Meanwhile, gold surged to a new record high of $3,866.99 as investors sought safety amid economic and trade risks. Oil stayed under pressure. U.S. crude dropped 0.6% to $63.10 per barrel, while Brent fell 0.7% to $67.53, weighed down by OPEC+ output increases and resumed exports from Iraq’s Kurdistan region.
In other economic updates, Japan reported weaker-than-expected factory output for August. China’s official PMI rose slightly to 49.8 from 49.4, but it remained in contraction territory. The data suggests producers are waiting for more stimulus and clarity on a U.S. trade deal.
On Wall Street futures, Euro Stoxx 50 slipped 0.09%, the DAX edged down 0.05%, and FTSE futures fell 0.11%. S&P 500 e-minis also dipped 0.05% to 6,710.
In cryptocurrencies, bitcoin traded flat at $114,289.88, while ether slid 0.7% to $4,200.85.
