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Gold stocks are upbeat after US shutdown agreement passes Senate

Asian stocks rose Tuesday, while gold and Nasdaq enjoyed their biggest gains in months due to signs that the U.S. shutdown is about to end.

Gold rose by nearly 3% over night and was comfortably above the $4,100 mark in Asia's morning. The Nasdaq gained 2.3%, recovering much of the losses caused last week by nerves about the valuation and profitability for AI firms.

South Korea's Kospi recovered from last week's losses and gained 1.3% early in trade. Japan's Nikkei also rose 0.4%. Hong Kong and China's markets were lower at mid-morning.

S&P futures were stable.

Late on Monday, the U.S. Senate approved a deal to restore federal funding in the United States and end this longest-running shutdown.

Now it heads to the House where Speaker Mike Johnson said he wanted to pass it by Wednesday, and then send it to President Donald Trump for him to sign.

Prediction markets such as online Polymarket have nearly reopened with prices set for the week's end.

Vasu Menon is the managing director of investment strategy for OCBC Singapore. He said that markets are breathing a huge sigh after the shutdown has ended.

He said that the reopening of the government will result in the publication of data, which could pave the way for interest rate reductions and provide extra support to gold prices.

The Nasdaq closed the day with its biggest daily gain since the middle of October, while the S&P 500 posted its biggest percentage gain in a single day since mid-October.

The Yen has fallen to its lowest level in nine months.

At first, safe havens like the Japanese yen or U.S. Treasuries retreated as risk-taking was the prevailing mood.

The yen is under pressure, at 154.49. This is its lowest level since February.

Bonds recovered some ground, but Federal Reserve speakers cast doubt on the rate reduction that markets tentatively expect for December.

The 10-year Treasury yield reached a high of 4,147% on Sunday, but ended the session at just 4.11%. Traders are already looking past reopening. The bond market closed for Veterans Day on Tuesday.

"We don’t think that (reopening) is going to result in a sustained sale of rates, because markets didn't respond negatively to the shut down in the first instance," said Jack Chambers senior rates strategist, ANZ, in Sydney.

Markets assumed that it would end." (Additional reporting from Gregor Stuart Hunter, Singapore; Editing done by Shri Navaratnam).

(source: Reuters)