Markets React as U.S. Inches Towards Shutdown Resolution

Asian stocks inched forward Wednesday as the U.S. Congress moved towards ending a historic government shutdown. Australian lithium miners powered stock gains, while Wall Street had a mixed session. Traders speculated on Federal Reserve easing as they focused on jobs data amid a lack of federal information.

Financial markets showed cautious optimism on Wednesday with the start of Asian trading, as U.S. legislators appeared to be nearing a resolution to the historic federal shutdown. The positive sentiment came as Congress moved towards restoring funding for government agencies.

Gains were led by Australian stocks, where lithium miners drove the commodity sector higher, contributing to a 0.2% increase in the overall market. Meanwhile, Japan's Topix saw a more impressive jump of 0.6%. This cautious advance followed a mixed performance in American markets, with the Dow Jones reaching a record high while the Nasdaq Composite slipped.

With federal data services halted due to the shutdown, traders turned their focus to jobs data. Reports showed private employers cut jobs, spurring speculation of further Federal Reserve easing. A CME Group tool indicated increased odds of a rate cut in December. Meanwhile, oil prices rose due to U.S. sanctions on Russian oil and expectations of resolving the shutdown.

(With inputs from agencies.)