Asia stocks trade mixed on Monday as concerns lingered over the extended U.S. government shutdown, with White House adviser Kevin Hassett warning that mass layoffs could follow if President Trump and congressional Democrats fail to reach a deal. Meanwhile, Sanae Takaichi’s win in Japan’s ruling party race positions her as the next prime minister, boosting growth expectations and lifting local and Asian markets. Bitcoin ( BTC-USD ) rallied to nearly $126,000 in early October, setting a new all-time high, as global economic uncertainty and the ongoing US government shutdown fueled safe-haven demand for the leading crypto asset. Gold prices rose past $3,900 per ounce to a record high on Monday, driven by investors seeking the safe-haven asset amid growing worries over a prolonged US government shutdown. Consumer prices in Thailand fell 0.72% Y/Y in September 2025, a sharper decline than market expectations of a 0.60% drop and following a 0.79% decrease in August. Vietnam’s GDP expanded 8.23% Y/Y in Q3 2025, quickening from an upwardly revised 8.19% rise in the previous period and marking the fastest pace since Q3 2022. Vietnam’s trade surplus increased to USD 2.85 billion in September 2025, up from USD 2.29 billion in September 2024. Japan ( NKY:IND ) rose 4.51% to around 47,600 on Monday, hitting fresh record highs after a ruling party vote paved the way for fiscal dove and pro-stimulus lawmaker Sanae Takaichi to become Japan’s next prime minister. The Japanese yen depreciated nearly 2% toward 150 per dollar on Monday, touching a two-month low. Among five contenders in the Liberal Democratic Party race to replace hawkish Prime Minister Shigeru Ishiba, Takaichi was seen as the most expansionary, closely aligned with the late Shinzo Abe’s “Abenomics” policies. China ( SHCOMP ) market closed. Hong Kong ( HSI ) fell 0.71% to 26,976 in Monday morning deals, marking the second session of losses as most sectors, led by tech and consumer stocks, retreated. The S&P Global Hong Kong SAR PMI edged down to 50.4 in September 2025 from 50.7 in August. Trading remained subdued, with mainland markets closed for Golden Week and Hong Kong set to shut Tuesday for a local break. India ( SENSEX ) rose 0.26% India and the 27-nation EU will resume Free Trade Agreement (FTA) talks in Brussels on Monday. Senior officials will participate in the next round of negotiations, aiming to iron out differences and secure an early agreement, The Economic Times reported. Australia ( AS51 ) fell 0.11% to 8,992 on Monday, extending gains from the previous week and holding at its highest level in more than a month. The Australian dollar edged higher to around $0.66 on Monday, extending gains from the previous week, as investors digested the latest inflation report. Investors digested the latest Monthly Inflation Gauge from the Melbourne Institute, which showed a 0.4% month-over-month increase in September 2025, rebounding from a 0.3% fall in the prior month. Investors are now turning their attention to speeches from RBA officials this week, which are expected to provide further insight into the central bank’s policy outlook. In the U.S. on Friday, all three major indexes ended mostly flat, the Dow Jones extended its record run, rising 240 points finishing at 46,758 after briefly surpassing 47,000 during the session, while the Nasdaq slipped 0.3% as the US government shutdown entered its third day. US gasoline futures rose more than 1% to $1.88 per gallon on Monday after OPEC+ agreed to a smaller-than-expected production increase. Traders now await fresh signals from central bank officials this week, including remarks from Fed Governor Stephen Miran on Wednesday and Chair Jerome Powell on Thursday. U.S. stock futures rose on Monday as investors looked past concerns over the ongoing government shutdown after lawmakers again failed to reach a funding deal: Dow +0.29% ; S&P 500 +0.31% ; Nasdaq +0.44% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Japan services sector expands for sixth month, but jobless rate hits 13-month high Australia’s services sector expands for 20th straight month despite sharp slowdown in September Australian trade surplus plunges to seven-year low amid tariff impact, exports tumble 7.8% m/m China's official PMI shows slowed contraction, but private survey signals growth, creating mixed economic picture Bank of Japan signals readiness for more rate hikes, sees tariff impact as temporary growth slowdown
