Asia report: Shares broadly higher weak dollar; Eyes on US shutdown

(Sharecast News) - Asian stock markets were largely higher on the back of a weaker dollar and positive factory data from China as traders also kept an eye on negotiations in Washington to avert a government shutdown. Japan's Nikkei fell 0.69% after gains on Friday. Australia's S&P/ASX 200 rose 0.85% as the Reserve Bank of Australia prepared to start its two-day policy meeting where it is expected to hold its cash rate steady at 3.6%.

Hong Kong's Hang Seng index jumped 2% with China's Shanghai Composite up 0.89% and South Korea's Kospi gaining 1.33%.

Sentiment was boosted after China reported its first gain in industrial profits in four months and factory deflation eased.

"Green shoots for the Chinese economy may not be enough to hold markets higher this week however, if a US economic shutdown cannot be averted. President Donald Trump is due to receive congress colleagues at the White House today to discuss the issue - as the government is due to run out of money on Wednesday if a new funding deal cannot be agreed," said Emma Wall, chief investment strategist at Hargreaves Lansdown.

"The proposed deal will secure funding to mid-November. Failure to do so will put additional pressure on the US dollar, which has traded at multi-year lows in recent weeks."

In equity news, Shares in Sony Financial Group surged 36% on market debut Monday after parent company Sony Group spun off the unit.

Reporting by Frank Prenesti for Sharecast.com