CHENNAI: Asian equities traded in a narrow range by late morning on Tuesday, as investors balanced weak economic signals from China with uncertainty over a possible US government shutdown.
The MSCI Asia-Pacific index (excluding Japan) was up around 0.3%, with most regional benchmarks posting small gains. Japan’s Nikkei 225 was flat to slightly higher, Hong Kong’s Hang Seng hovered near the previous close, and Shanghai’s Composite Index gained about 0.4% despite weak factory activity readings.
China’s official manufacturing PMI for September slipped to 49.8, contracting for the sixth consecutive month, reflecting persistent strain on larger state-backed firms. Meanwhile, a private services survey showed growth at 52.9, a slight moderation from August, with employment falling at its fastest pace in more than a year. Export demand offered some relief, but domestic weakness continued to weigh on sentiment.
Commodity moves shaped market direction as well. Gold prices touched record highs, supported by safe-haven demand amid global policy uncertainty. In contrast, crude oil declined on expectations of higher OPEC+ supply and resumed Kurdish exports, dragging energy stocks in parts of the region.
Currency markets remained volatile. The yen stayed weak, benefiting Japanese exporters, while the yuan faced renewed pressure, adding to regional caution. The Indian rupee, in line with peers, traded near record lows against the US dollar.
Investors were also watching developments in Washington, where the risk of a US government shutdown could disrupt key economic data releases, including the September jobs report. This, along with ongoing trade frictions, limited risk appetite across Asia.
Overall, Asian markets at 11 AM IST reflected a cautiously positive tone, with selective buying in equities offset by concerns over slowing Chinese growth, falling oil prices, and US fiscal uncertainty. Analysts expect regional indices to stay rangebound until clearer global signals emerge.