Asia-Pacific markets rose on hopes of U.S President Joe Biden and congressional leaders inching closer to a deal to raise the U.S. debt ceiling and avoid a default.
House Speaker Kevin McCarthy said that a “better process” is now in place for further talks, saying it’s “possible to get a deal by the end of the week.” Biden shortened his trip to Asia to focus on the negotiations, the White House said.
In Japan, the Nikkei 225 rose 1.54% and the Topix was up 1.09% as investors further digested Japan’s trade data for April – imports fell further than expected while exports growth saw a two-year low on weakened China demand.
South Korea’s Kospi gained 0.71% and the Kosdaq gained 0.24% in Asia’s morning trade.
Stocks in Australia also rose, with the S&P/ASX 200 up 0.5% as the country’s unemployment rate came in at 3.7% in April, higher than the 3.5% expected by economists.
“A second consecutive day of softer domestic data will likely be enough to keep a hawkish Reserve Bank of Australia from raising rates again when it meets in June,” IG analyst Tony Sycamore said in an email.
Hong Kong’s Hang Seng index rebounded after Wednesday’s late sell off, climbing 1% on Wednesday. Mainland Chinese markets are also higher, with the Shenzhen Component gaining 0.8% and the Shanghai Composite up 0.15%.
Stocks on Wall Street closed higher on Wednesday, with all three major indexes gained over 1%, with the Nasdaq Composite gaining the most at 1.28%. The Dow Jones Industrial Average climbed 1.24% and the S&P 500 gained 1.19%.