CANBERA (dpa-AFX) - Asian stocks ended mixed on Tuesday as investors fretted over a possible U.S. government shutdown, which could start Tuesday midnight (local time) if Congress fails to reach an agreement.
A shutdown could delay releases of key U.S. economic data, including closely watched employment data for September, construction spending and possibly international trade data for August.
China's Shanghai Composite index rose 0.52 percent to 3,882.78 as investors waited for further stimulus to boost domestic demand and sought clarity on a trade deal with the U.S.
Earlier in the day, China's official manufacturing PMI came in at 49.8 in September, up from 49.4 and rebounding to a six-month high while the non-manufacturing PMI disappointed by falling back to neutral levels.
A separate, private PMI survey showed both manufacturing and services activity growing much more than expected in September.
Hong Kong's Hang Seng index recovered from an early slide to end 0.87 percent higher at 26,855.56.
Japanese markets ended lower after a summary of opinions at the central bank's September policy meeting showed board members debated the feasibility of raising interest rates in the near term.
Half-yearly portfolio adjustments ahead of the LDP leadership election as well as disappointing industrial output and retail sales data also weighed on sentiment.
The Nikkei average dipped 0.25 percent to 44,932.63 while the broader Topix index settled 0.19 percent higher at 3,137.60. Tech stocks led losses, with Advantest and SoftBank Group falling 3.3 percent and 1.9 percent, respectively.
Seoul stocks drifted lower, with the Kospi average closing down 0.19 percent at 3,424.60. Data showed earlier in the day that South Korea's industrial production rose 2.4 percent month-over-month in August 2025, the strongest pace in five months.
Australian markets fell as the Reserve Bank of Australia held rates steady as expected and struck a cautious tone on policy. The benchmark S&P/ASX 200 dropped 0.16 percent to 8,848.80, with financials and energy stocks pacing the declines.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rallied 1.22 percent to 13,292.36, marking its best daily gain since early August despite renewed volatility in global markets.
Gold rallied to a fresh high in Asian trade as the U.S. dollar weakened ahead of a potential government shutdown. Oil extended overnight losses on expectations of increased OPEC+ supply.
Overnight, U.S. stocks eked out modest gains as Treasury yields fell across the curve, helping offset uncertainty around trade policies as well as concerns about a looming government shutdown.
Investors also cheered data that showed pending home sales for August jumped to the highest level in five months.
The tech-heavy Nasdaq Composite gained half a percent, the S&P 500 rose 0.3 percent and the Dow closed 0.2 percent higher.
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