Asian markets looked set to open for trade slightly higher on Monday as investors kept an eye on political developments in the U.S. after a government shutdown began last week. Meanwhile, the euro and pound both traded higher following weekend political moves.

The U.S. government shutdown continued for a second day yet there were some signs of progress on Sunday, with Republicans appearing unified over plans to end the impasse with a temporary solution. Democrats, however, want an immigration agreement in place before they support a spending plan.

“The shutdown in the U.S. looks set to dominate market attention this week. It is likely to result in plenty of noise, but no dramatic shifts in trends,” ANZ Research said in a morning note.

On Friday, U.S. stocks had closed in positive territory as earnings season rolled on. The Dow Jones industrial average edged up 0.21 percent, or 53.91 points, to close at 26,071.72 while the SP 500 and Nasdaq composite ended the session at record highs.

In Asia Pacific equities, futures implied a slightly higher open for Japanese markets. Nikkei futures traded in Chicago were up 0.22 percent at 23,860 and Osaka futures were 0.05 percent higher at 23,820 compared to the benchmark’s last close.

Down Under, the SP/ASX 200 edged up by 0.08 percent.

What’s on tap

Monday’s economic calendar is fairly light (all times in HK/SIN):

  • 7:00 a.m.: Japan Reuters tankan index
  • 11:30 a.m.: Thailand trade data
  • 4:00 p.m.: Taiwan unemployment

Central banks, meanwhile, will be in focus this week as the Bank of Japan convenes a two-day monetary policy meeting beginning Monday. In Europe, the European Central Bank is set to make its interest rates decision on Thursday.

— CNBC’s Jacob Pramuk contributed to this report.


News Reporter

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