Asian markets inched higher on Monday, lifted by Wall Street’s gains after US inflation data met expectations and eased concerns about US President Donald Trump’s latest tariff announcements.Hong Kong’s HSI jumped 353 points or 1.35% to 26,482. Shenzhen also jumped 169 points or 1.28% to trade at 13,378 while Shanghai gained 6 points or 0.17% to reach 3,834. South Korea’s Kospi also inched 44 points or 1.3% to 3,430.Meanwhile, Japan’s Nikkei fell 462 points or 1.02% to trade at 44,892 at 9.05 AM IST. Investors, however, remained cautious about the ongoing political deadlock in Washington, where lawmakers have yet to reach a funding agreement. All three major US indexes closed higher on Friday, breaking a three-day losing streak. The rebound came after the Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) index, rose 2.7 percent in August, slightly higher than July’s 2.6 percent but above the Fed’s two percent target. With a Tuesday deadline approaching, congressional leaders are set to meet President Trump to try and resolve the funding impasse, which could result in partial government closures. Democratic House leader Hakeem Jeffries told ABC he was “hopeful” a deal could be reached before the cutoff, while Senate Democratic leader Chuck Schumer echoed cautious optimism, noting that any progress would depend on Trump’s Republicans. Trump has maintained a firm stance on his agenda, cancelling a meeting last week with senior opposition leaders. That discussion is now scheduled for Monday. Despite the political uncertainty, most Asian markets remained positive. Oil prices fell on speculation that OPEC+ may raise output, raising concerns about oversupply. The drop came after last week’s rally, which had been fuelled by growing tensions between Nato countries and Russia, with the threat of fresh sanctions on Moscow.
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