Markets in Asia Pacific rose on Thursday following news that President Donald Trump had reached an agreement with Democratic congressional leaders for a short-term extension to the US debt ceiling.
Mr Trump backed the Democrat’s proposal for a three-month extension to the debt ceiling that was set to expire this month.
Japanese stocks rose with the Topix index up 0.8 per cent, led by the consumer discretionary and industrials sectors, which were up 1.2 per cent and 1 per cent respectively. Energy stocks also rose 1.1 per cent on higher oil prices.
Energy stocks were also helping to support Hong Kong’s Hang Seng, with the sector up 0.5 per cent. The broader index was up 0.5 per cent as the financials and information technology sectors both rose 0.3 per cent. Chinese carmaker Geely popped 4.4 per cent after it reported its august sales volume jumped 80 per cent year on year.
Australia’s S&P/ASX 200 added 0.3 per cent as financials rose 0.4 per cent and energy stocks were up 0.6 per cent. Rio Tinto was up as much as 1.4 per cent after the company announced a 50 per cent increase in reserves at one of its Australian coal mines.
South Korea’s Kospi climbed 1 per cent, heading for its best day since June after Donald Trump said military action was not his “first choice” to deal with North Korea in the wake of Pyongyang’s nuclear test on Sunday.
The European Central Bank’s policy meeting later on Thursday was also in focus. Investors will be looking for further details on the bank’s plans to end its €2tn quantitative easing programme and discussion of the single currency’s rise. The euro was flat at $1.1923.
The Canadian dollar edged lower to $1.2233 after surging to its highest level in more than two years against its US counterpart following the Bank of Canada’s decision to raise interest rates by 25 basis points.
The dollar index measuring the greenback against a basket of peers was down 0.1 per cent at 92.200 and the Japanese yen was a touch stronger against the US dollar at ¥109.11.