Markets Surge on Hopes of U.S. Government Reopening

Asian and U.S. stock markets experienced notable gains as expectations grew for an end to the U.S. government shutdown. Gold saw significant increases, while the Nasdaq rebounded. The Senate made initial progress on a deal to restore federal funding, but hurdles remain before final approval. The yen and U.S. Treasuries faced setbacks.

Asian stock markets saw a notable rise on Tuesday, bolstered by promising signs of a potential deal to conclude the prolonged U.S. government shutdown.

Gold prices surged nearly 3%, comfortably exceeding $4,100 during the Asian morning session. The Nasdaq's 2.3% rise marked a significant recovery from last week's downturn due to concerns surrounding AI firms' valuation and profitability.

Despite S&P 500 futures gaining 0.1%, uncertainty lingers about Congress's final approval of the deal, with several legislative obstacles still to clear. Prediction markets expect a swift resolution by the week's end, but any delays might affect market optimism.

(With inputs from agencies.)