Asian stocks advance after US House votes to raise debt ceiling

Shares edged greater in Asia and futures markets tipped European shares to rally on Thursday after the US Home of Representatives voted to lift the debt ceiling, sending the invoice to the Senate the place it’s anticipated to be handed.

Hong Kong’s benchmark Dangle Seng inventory index and Japan’s Topix each rose 0.8 per cent, and the CSI 300 index of Shanghai- and Shenzhen-listed shares superior 0.7 per cent.

The positive factors in Asia-Pacific buying and selling got here after the Home voted 314-117 on Wednesday in favour of a invoice to lift the US debt ceiling. The vote was seen as the most important hurdle for the laws, which nonetheless has to go the Senate earlier than it may be signed into legislation forward of a June 5 deadline.

Futures markets tip the Euro Stoxx 50 to climb 0.7 per cent on the open, whereas the FTSE 100 is anticipated to rise 0.3 per cent. The S&P 500 is about to open flat later within the day.

“We nonetheless need to get by means of the Senate, however I’m extra inclined to assume that’s a rubber stamp at this level,” mentioned Stephen Innes, managing accomplice at SPI Asset Administration.

“The market right here is positioned very a lot in favour of this going by means of. Shares could be share factors decrease if buyers suspected there was any trace that this wouldn’t occur.”

Shares in Asia had been additionally bolstered by an sudden rebound in a key gauge of Chinese language manufacturing unit exercise.

The Caixin/S&P World manufacturing buying managers’ index rose to 50.9 in Could, in distinction to the official manufacturing PMI launched earlier this week, which declined to 48.8. A studying above 50 signifies enlargement in contrast with the earlier month, whereas one beneath 50 means a contraction.

The Caixin gauge tracks small and midsized producers, whereas the official PMI follows exercise at bigger, state-run corporations.

“The typical of the 2 picked up and is in line with easing downward strain in manufacturing unit exercise final month,” mentioned Julian Evans-Pritchard, head China economist at Capital Economics.

He mentioned the manufacturing uptick and up to date positive factors for China’s companies sector urged second-quarter progress “might not be as dangerous as many worry”.

In currencies, China’s renminbi was up 0.2 per cent in opposition to the greenback following the PMI studying, at Rmb7.096.

Back To Top