Asia-Pacific region, stocks were mixed as several holidays closed markets throughout the week. The ongoing US government shutdown also had an impact on investor sentiment. However, there were some notable movements in the currency and commodity markets.

In Japan, the Nikkei 225 rallied, while the JPY fell amid hopes of fiscal loosening and a delay to the Bank of Japan’s (BoJ) policy normalization following Sanae Takaichi’s victory in the LDP leadership race. The Japanese government bond curve steepened as investors priced in the possibility of more aggressive monetary policy.

In the energy sector, crude futures gained after OPEC+ producers agreed to a modest production increase of 137k bpd in November. This move was seen as a sign of confidence in the global oil market despite the ongoing supply glut.

Meanwhile, there are signs of progress in the Middle East conflict between Israel and Hamas. Negotiations are set to take place on Monday in Egypt, with hopes for a ceasefire on the horizon.

Back in the US, National Economic Council (NEC) Director Hassett warned that mass layoffs of federal workers may begin if President Trump sees that shutdown talks are going nowhere. The ongoing government shutdown is entering its 34th day, with no end in sight.

Looking ahead, investors will be eyeing key economic data releases from the Eurozone, including the European Union’s Construction PMI (September), Sentix (October), Retail Sales (August), and Employment Trends (September). The Bank of England’s (BoE) Bailey, European Central Bank’s (ECB) de Guindos, Lane, Escriva, and Lagarde will also be in focus.

Overall, the Asia-Pacific region is likely to remain volatile as investors navigate a complex geopolitical landscape. However, with several key economic data releases on the horizon, there are opportunities for growth in select markets.