Investors in Asia shrugged off yet another fiscal battle in the U.S. while keeping a tight focus on implications for the country’s monetary policy.
The Nikkei 225 index in Japan plummeted 314.23 points, or 2.2%, to 14,170.49, amid a sudden flurry of options activity.
Hong Kong’s Hang Seng Index returned from holiday to gain 124.62 points, or 0.6%, to 22,984.48
Asian stocks and currencies tumbled over the summer when investors became convinced that the U.S. Federal Reserve would start to tighten its monetary policy. The central bank’s surprise decision last month to maintain its policies has renewed confidence in the region, although some market observers say investors are over-analyzing the Fed’s moves and as a result don’t believe the U.S. shutdown will have a big impact on its policy decisions.
Hong Kong stocks were led by Hutchison Whampoa after local media reported the ports-to-telecoms conglomerate may spin off its Watsons health and beauty retail unit through an initial public offering.
Hutchison Whampoa jumped 3.3% to HK$95.95 its highest closing level since Nov. 1, 2007 after the Hong Kong Economic Times reported that it may have an IPO for Watsons in the next 12 to 18 months.
Japan stocks dropped, having failed to maintain earlier gains in a choppy session, after Prime Minister Shinzo Abe's stimulus package unveiled the previous day offered little impetus for fresh buying.
In other markets;
Markets in Shanghai remained shuttered for holidays until next Tuesday.
Korea’s Kospi index eked forward 0.60 points to 1,999.47
Taiwan’s Taiex index gained 29.50 points, or 0.4%, to 8,216.52
The Singapore Straits Times Index dropped 28.92 points, or 0.9%, to 3,152.58
In New Zealand, the Exchange 50 Gross Index gained 25 points, or 0.5%, to 4,768.87
In Australia, the S&P/ASX 200 poked forward 8.76 points, or 0.2%, to 5,215.56
