Asian Shares Mixed; Hong Kong Stocks Slip On Profit Booking

(RTTNews) - Asian stocks ended mixed in cautious trade on Friday as concerns about a U.S. government shutdown and potential federal job cuts offset excitement around AI as well as expectations of further interest-rate cuts by the U.S. Federal Reserve.

As the shutdown enters its third day, Republicans are seeking to use the threat of permanent cuts to encourage Democrats to vote to reopen the government.

President Trump said he would be meeting with White House Budget Director Russell Vought "to determine which of the many Democrat Agencies, most of which are a political SCAM" are to be cut, and "whether or not those cuts will be temporary or permanent."

Seoul markets were closed for National Foundation Day while those in mainland China remain closed until the middle of next week.

Hong Kong's Hang Seng index fell 0.54 percent to 27,140.92 after rallying over four percent in the previous three trading sessions.

U.S.-China relations were in focus after U.S. Treasury Secretary Scott Bessent predicted a "pretty big breakthrough" in the next round of trade talks with China.

Japanese markets soared as tech momentum showed no sign of fading and investors awaited a key ruling party vote that will decide the country's next Prime Minister.

The Nikkei average jumped 1.85 percent to close at a record high of 45,769.50 while the broader Topix index settled 1.35 percent higher at 3,129.17.

Hitachi shares surged 10.3 percent after the conglomerate announced a strategic partnership with OpenAI to build AI infrastructure and expand data centers globally.

Other tech firms followed suit, with Renesas Electronics climbing 7.3 percent and SoftBank Group rising 3.6 percent.

Australian markets advanced, led by gains in financials, miners and healthcare stocks.

The benchmark S&P/ASX 200 rose 0.46 percent to 8,987.40, caping off its strongest week since August on the back of higher commodity prices and expectations that interest rates will stay higher for longer. The broader All Ordinaries index ended up 0.52 percent at 9,288.10.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index gained 0.46 percent to close at 13,514.09 amid signs of life in the property sector.

The dollar index held ground after registering gains in the previous session. Gold headed for a seventh weekly gain on Fed rate cut hopes and U.S. government shutdown worries.

Oil was poised for its steepest weekly loss in over three months, as traders brace for an OPEC+ supply surge.

Overnight, U.S. stocks rose for a fifth straight session, with all three major averages posting new records, as a wave of good news from the AI sector offset worries about the U.S. government shutdown, which is expected to drag on at least until the end of the week.

The tech-heavy Nasdaq Composite rose 0.4 percent as OpenAI completed a deal to help employees sell shares in the company at a $500 billion valuation. The Dow edged up by 0.2 percent and the S&P 500 finished marginally higher.