Stocks Climb Amid U.S. Government Shutdown Optimism

Asian stocks advanced as the U.S. Congress moved closer to ending the federal shutdown. The MSCI Asia-Pacific index rose, driven by hopes after the Senate passed a bill. U.S. stock futures also showed gains, reflecting improved sentiment, while economic uncertainty remained due to data gaps from government agencies.

Asian stocks made notable progress on Wednesday with the U.S. Congress showing signs of resolving the federal government shutdown. The MSCI Asia-Pacific index excluding Japan climbed 0.4%, fueled by optimism after the Senate's passage of a bill aimed at restoring government funding.

Investor sentiment was bolstered by the likelihood that the House will approve the bill, ending the longest shutdown in U.S. history. This positive atmosphere influenced U.S. markets, where S&P 500 e-mini futures rose 0.2%, despite mixed results on the previous day.

In the meantime, traders are closely watching the Federal Reserve, with an implied 67% probability of a rate cut at its forthcoming meeting. As economic indicators remain patchy due to the shutdown, focus has shifted to private sector data, while global markets react to fluctuating currency values.

(With inputs from agencies.)