Asian stocks ended mixed in thin trading on Wednesday, with mainland Chinese and Hong Kong markets closed for the National Day holiday.

The United States has entered a federal government shutdown, the first in nearly seven years, after a stopgap funding bill failed.

The shutdown could delay crucial economic reports, including Friday's non-farm payrolls data, which are vital for the Federal Reserve's interest rate decisions.

Japanese markets ended sharply lower as the yen extended gains for a fourth straight session, pressured by the U.S. government shutdown and anxiety ahead of the leadership election for the ruling Liberal Democratic Party.

Sentiment was also dented by a survey that showed Japan's manufacturing activity shrank at the fastest pace in six months in September.

On the contrary, a central bank survey revealed that sentiment among Japan's large manufacturers improved for a second straight quarter.

The Nikkei 225 Index slid 0.9 percent to 44,850.85, while the broader Topix Index settled 1.4 percent lower at 3,094.74.

Financial stocks paced the declines, with Dai-ichi Life Holdings and Mizuho Financial Group both tumbling around 4 percent.

Seoul stocks advanced after the release of better-than-anticipated September export data. The Kospi jumped 0.9 percent to 3,455.83, led by gains by semiconductors, energy and shipbuilding shares.


Samsung Electronics rallied 2.5 percent and its rival SK Hynix surged 3.6 percent ahead of a meeting between President Lee Jae Myung and OpenAI CEO Sam Altman later in the day.

Australian markets closed on a flat note as the Reserve Bank of Australia's latest remarks cast doubt on chances of a November rate cut.

Banks, mining and energy stocks declined, offsetting gains among gold miners. BHP fell 2.5 percent on concerns about China's reported pause of iron ore purchases from the company.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index shot up 1.1 percent to 13,433.99 after the government's announcement of energy sector reforms.

Gold hovered near a record high in Asian trading as the dollar fell against a basket of major currencies following weak consumer confidence data. Oil ticked higher after two days of declines.

Overnight, U.S. stocks rose for a third straight session as investors took the prospect of a government shutdown in stride.

In economic news, U.S. consumer confidence fell in September to its lowest since April, while job openings were little changed in August and hiring was subdued, separate sets of data revealed. The Dow edged up 0.2 percent to hit a record closing high.

The tech-heavy Nasdaq Composite and the S&P 500 rose 0.3 percent and 0.4 percent, respectively, to notch their best third quarter since 2020 and their best September performance since 2010, shrugging off the risk of stagflation and elevated stock valuations.