Asian stock markets under pressure; US government shutdown in focus

Asian equity markets ended mixed on Monday as market players continued to digest political developments in the United States following the announcement of a government shutdown.

The US government was forced to shut down operations after Democrats blocked a budget extension in Congress due to an ongoing dispute over migration policy.

This matter is expected to dominate stock and currency markets in the next few days, weighing on sentiment and the risk on / risk off balance.

While the Senate is expected to vote again on Monday, chances are for the time being no major advancements will be made as there is no agreement between parties.

No relevant economic data is due for release on Monday.

In Japan, the Nikkei 225 was supported by the technology and financial sectors, with major names such as Sony, Toshiba and SoftBank adding most gains, while automakers soften up.

In Australia, the S&P/ASX 200 paired early gains to close with a moderate loss at 5,991.9 as a retracement of the financial components dragged the benchmark downwards. Stocks of the Commonwealth Bank and the National Australia Bank were under pressure.

In South Korea, the Kospi was down nearly one percent as key components such as Samsung Electronics dropped by more than two percent in the session.

In the upcoming days, investors will be paying attention to monetary policy meetings by the European Central Bank and the Bank of Japan.

Traders will also keep an eye on economic data, with the US fourth-quarter gross domestic product expected to be released on Friday as of 13:30 GMT, with a 3.0 percent rate seen.

<<< Asian Stock Indexes at 07:50 GMT >>>

Australia ASX S&P                -13.10             -0.21%            6,106.20

Shanghai Composite             +13.50            +0.39%           3,501.36

Hong Kong Hang Seng          +142.03          +0.44%           32,396.92

Japan Nikkei 225                   +8.27              +0.03%           23,816.33

Taiwan TSEC 50 Index         +80.61            +0.72%           11,231.46