Asian markets stuttered, US futures fell and gold hovered near record highs Wednesday after lawmakers in Washington failed to reach a deal to avert a government shutdown.The prospect of federal services being closed overshadowed optimism the Federal Reserve will cut interest rates again, with the crisis possibly causing the postponement of key data used by the bank to decide on policy.Democrats and Republicans have been unable to bridge their differences on funding the government beyond Tuesday — the end of the fiscal year — with both sides blaming each other.Senate Republicans tried to rubber-stamp a House-passed temporary funding patch — but could not get the handful of Democratic votes required to send it to President Donald Trump’s desk.Democrats want to see hundreds of billions of dollars in healthcare spending for low-income households restored, which the Trump administration is likely to eliminate.”We’ll probably have a shutdown,” the Republican president told reporters before the vote. Such a scenario would see non-essential operations grind to a halt, leaving hundreds of thousands of civil servants temporarily without pay, and payment of many social safety net benefits potentially disrupted.Trump threatened to punish Democrats and their voters during any stoppage by targeting progressive priorities and forcing mass public sector job cuts.”So we’d be laying off a lot of people that are going to be very affected,” he said”And they’re Democrats, they’re going to be Democrats,” he told an event at the White House, adding that he would use the pause to “get rid of a lot of things we didn’t want, and they’d be Democrat things”.While most shutdowns end after a short period with little effect on markets, investors remain concerned, particularly as it could prevent the release Friday of the key non-farm payrolls report — a crucial guide for the Fed on rate decisions.”Without (the report), the Fed would be forced to navigate October’s decision by starlight rather than compass, relying on smaller surveys and anecdotal signals,” wrote Stephen Innes at SPI Asset Management.”The October cut looks assured… but beyond that, the path becomes guesswork. Traders hate nothing more than an information vacuum. In its absence, every tick of secondary data looms larger than it should, amplifying volatility.”Futures on all three main indexes in New York were in the red — with the Dow coming off a record — and Asian equities were mixed.Tokyo, Sydney and Manila fell, while Singapore, Seoul and Taipei rose.Gold, a go-to in times of turmoil and uncertainty, was hovering just below its record high of $3,871.72 owing to a weaker dollar, bets on lower borrowing costs and worries about the impact of the shutdown.In company news, Australian mining titan BHP fell more than one percent following reports that China’s state-run iron ore buyer told steelmakers to temporarily stop buying seagoing, dollar-denominated cargoes from the firm, as part of a pricing dispute.Australian Prime Minister Anthony Albanese called the move “disappointing”.- Key figures at around 0215 GMT -Tokyo – Nikkei 225: DOWN 1.0 percent at 44,480.02Hong Kong – Hang Seng Index: Closed for a holidayShanghai – Composite: Closed for a holidayEuro/dollar: DOWN at $1.1736 from $1.1739 on TuesdayPound/dollar: DOWN at $1.3439 from $1.3448Dollar/yen: UP at 148.00 yen from 147.86 yenEuro/pound: UP at 87.33 pence from 87.29 penceWest Texas Intermediate: UP 0.2 percent at $62.50 per barrelBrent North Sea Crude: UP 0.2 percent at $66.18 per barrelNew York – Dow: UP 0.2 percent at 46,397.89 (close)London – FTSE 100: UP 0.5 percent at 9,350.43 (close)

South Korea recorded its highest ever semiconductor exports in September, official data showed Wednesday, despite growing pressure from US tariffs and other restrictions on the crucial sector.Seoul logged more than $16.6 billion in exports of semiconductors last month, up by more than a fifth from September 2024, according to data from the country’s industry ministry.The surge was driven by high demand for high-value memory such as HBM chips used in AI servers, the industry ministry said.Cars, the country’s other key export, also performed strongly, with auto shipments climbing to $6.4 billion, the highest ever recorded for the month of September.Driven by these strong figures, overall exports reached $65.9 billion, — the highest in more than 42 months.Exports rose to all major regions except the United States, which fell 1.4 percent from a year earlier to $10.27 billion, weighed down by tariffs on steel, automobiles and machinery.Asia’s fourth-largest economy was initially hit with a 25 percent across-the-board tariff by the United States but managed to secure a last-minute agreement for a reduced 15 percent rate.South Korea is one of Washington’s biggest trade partners, with automobiles leading the pack in exports.The country has yet to secure a deal, with auto tariffs reduced from 25 to 15 percent but not yet in effect, unlike in neighbouring Japan.Tariffs of 50 percent also remain in place on some key exports such as steel and aluminium.The new record is a “valuable achievement made by our companies, who swiftly diversified their export markets despite the unfavourable conditions of weakened exports to the US caused by tariff measures,” industry minister Kim Jung-kwan said in a statement.”Uncertainty surrounding our exports remains high due to ongoing US tariff negotiations, and we must remain vigilant and respond swiftly,” said Kim. He added that “the government will strengthen policy support to ensure that our companies can maintain export competitiveness.”

Nike reported a surprise increase in quarterly sales Tuesday, pointing to progress on a turnaround as it forecast a bigger cost hit from US tariffs.Shares of the sports giant jumped in after hours-trading as Nike executives said their strategic pivot — branded as “Win Now” — was beginning to see greater success.”I’m encouraged by the momentum we generated in the quarter, but progress will not be linear as dimensions of our business recover on different timelines,” said Chief Financial Officer Matthew Friend.Profits were $727 million in Nike’s first quarter of fiscal 2026, down 31 percent from the year-ago level. Revenues inched one percent higher to $11.7 billion.Sales rose in every region except Greater China.The results topped analyst estimates in both earnings and revenues. But Friend lifted the company’s estimate of the total cost from US tariffs under President Donald Trump’s administration to an annual hit of $1.5 billion from the prior $1 billion.Friend also lowered the forecast for profit margins in the coming quarter.The sports giant in recent years has struggled with an oversupply of merchandise that fell flat with consumers, necessitating heavy promotions and raising doubts about innovation.Nike’s heavy emphasis on direct selling to consumers under prior management meant scaling back relationships with wholesalers that company leaders are now working to rebuild.In September 2024, Nike announced the return of company veteran Elliot Hill as CEO. Hill said Tuesday the company was working to deepen promotional efforts by sport and through the company’s brands of Jordan and Converse, in addition to namesake Nike.Neil Saunders of GlobalData Retail described the results as a partial victory.”All in all, we think Nike is making progress. But there is a lot more work to be done in resetting the brand at a macro level and to gain ground among different pockets and tribes of consumers that now form the sportswear market,” Saunders said in a note.Shares of Nike rose 3.6 percent in after-hours trading.