Asia-Pacific markets mixed as shutdown fears ease after Trump, Democrats reach provisional deal

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Low angle view of tall buildings in Tokyo, Japan, showcasing diverse architectural styles

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Asia-Pacific markets were set for a mixed session after U.S. President Donald Trump and Senate Democrats reached a provisional agreement to avoid a U.S. government shutdown.

Trump endorsed a Senate deal to fund the vast majority of the federal government through the remainder of the fiscal year, easing near-term political uncertainty for investors.

Senators clinched a deal with just over a day until a partial government shutdown. They agreed to remove funding for the Department of Homeland Security from the package and pass the other five bills, while DHS will be funded by a stopgap.

Japan's Nikkei 225 futures pointed to a weaker open, with the contract in Chicago at 53,250 and its counterpart in Osaka at 53,160, compared to the previous close of 53,375.6.

Hong Kong Hang Seng index futures were at 27,829, below the benchmark's last close of 27,968.09.

Australia's S&P/ASX 200 added 0.44%.

Investors continue to monitor gold and silver after prices of the precious metals rose to a fresh record Thursday.

Futures tied to the S&P 500 were down 0.16%, as were Nasdaq 100 futuresDow futures fell 112 points, or about 0.2%.

Overnight in the U.S., the S&P 500 fell, bogged down by Microsoft, as traders reacted to the megacap technology company's latest earnings results and the Federal Reserve's interest rate decision.

The broad market index slipped 0.13% to close at 6,969.01, while the Nasdaq Composite declined 0.72% to end at 23,685.12. The Dow Jones Industrial Average advanced 0.11%, or 55.96 points, and settled at 49,071.56. In cryptocurrencies, bitcoin shed more than 5% and hit its lowest level in almost two months.

— CNBC's Sean Conlon and Pia Singh contributed to this report.

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