Shares rise in Asia; dollar dips as US gov't faces possible closure

Most share markets rose in Asia on Monday while the dollar eased as investors braced for a possible shutdown of the US government, which would in turn delay publication of the September payrolls report and a raft of other key data.

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President Donald J. Trump will meet with the top Democratic and Republican leaders in Congress later on Monday to discuss extending government funding. Without a deal a shutdown would begin from Wednesday, which is also when new US tariffs on heavy trucks, patented drugs and other items go into effect.

A protracted closure could leave the US Federal Reserve flying blind on the economy when it meets on Oct. 29.

“If the shutdown lasts beyond the Fed meeting, the Fed will rely on private data for its policy decisions,” analysts at BofA wrote in a note. “On the margin, we think this may lower the likelihood of an October cut, but only marginally.”

Markets imply a 90% chance of a Fed cut in October, with around a 65% probability of another in December.