TOKYO, Sept 30, (AP): Asian shares were mixed in narrow trading Tuesday as investors braced for a possible US government shutdown. Japan's benchmark Nikkei 225 declined nearly 0.3% to finish at 44,932.63. China reported lackluster data on factory activity for September that reflect persistent weakness in the world's second largest economy as trade tensions with the US weigh on exports. Hong Kong’s Hang Seng gained 0.3% to 26,694.10.

The Shanghai Composite index added 0.5% to 3,882.07. Elsewhere in Asia, Australia's S&P/ASX 200 edged down 0.2% to 8,847.00. South Korea's Kospi slipped nearly 0.1% to 3,428.28. The US federal government is nearing a budget deadline that could result in its shutdown. Past shutdowns have been shortlived and had minimal impact on markets and the economy.

But if the stalemate between Democratic and Republican lawmakers persists, that could delay the collection and release of economic data, such as on jobs and inflation. This shutdown may also be different because the White House may push for large-scale firings of federal workers. "It feels as though the market has already flogged the government shutdown story from every conceivable angle, the way traders circle a fading theme until there’s nothing left but dust.

Yet with the clock ticking down to less than 24 hours before the doors are slated to close in Washington, the narrative refuses to die,” said Stephen Innes. managing partner at SPI Asset Management. On Monday, Wall Street finished higher as technology stocks recovered some of their losses from late last week. The S&P 500 added 0.3% to 6,661.21 and the Dow Jones Industrial Average edged 0.1% higher, to 46,316.07.

The Nasdaq composite climbed 0.5% to 22,591.15. Big Tech stocks ticked higher. Amazon added 1.1% following its 5.1% drop last week, and Microsoft rose 0.6% to recover some of its 1.2% decline. They were two of the strongest forces lifting the S&P 500 because they’re two of Wall Street’s most valuable stocks. A report is due Friday about how many jobs US employers created and cut last month. The hope is that it will be balanced enough to keep the Federal Reserve on track to continue cutting interest rates.