Asian Shares Gain As U.S. Senate Clears Debt Deal

Asian stocks advanced on Friday after the U.S. Senate passed a bipartisan bill to raise the debt ceiling into 2025 and cut the deficit, the final hurdle for the U.S. to avoid default on its debt.

Hopes of an economic recovery in China and hopes of a pause in the U.S. central bank’s tightening policy also boosted investors’ appetite for riskier assets.

The dollar fell broadly after Fed Bank of Philadelphia President Patrick Harker said Thursday the U.S. central bank “should at least skip this meeting in terms of an increase.”

Gold was unchanged ahead of the all-important U.S. jobs data due later in the day, while oil prices rose over 1 percent to extend overnight gains amid bets on further production cuts by OPEC+ at the producer cartel’s meeting on Sunday.

Chinese shares rose on optimism that policymakers would soon deliver the much- needed stimulus to boost growth. The benchmark Shanghai Composite Index climbed 0.8 percent to 3,230.07.

Hong Kong’s Hang Seng Index soared 4.0 percent to 18,949.94, led by gains by property developers, tech and consumer stocks.

Tencent Holdings surged 5.8 percent and Alibaba Group Holding jumped 6.5 percent on reports that Nvidia’s CEO plans to meet top executives from major Chinese technology firms in June.

Japanese shares rallied to close at a 32-year high after Bank of Japan Governor Kazuo Ueda said the bank is in no hurry to tighten its ultra-loose policy.

The Nikkei 225 Index jumped 1.2 percent to 31,524.22, while the broader Topix Index ended 1.6 percent higher at 2,182.70.

Tech investor SoftBank Group surged 4.3 percent on speculation that its chip unit will benefit from a boom in artificial intelligence investment. T&D Holdings jumped 4.3 percent as US. debt default worries receded.

Seoul stocks closed at a one-year high after revised data showed the country’s economy grew slightly more than expected in the first quarter and inflation eased for a fourth consecutive month in May to the lowest in 19 months. The Kospi gained 1.3 percent to close at 2,601.36.

Australian markets rose in cautious trading ahead of a RBA policy meeting next week. The benchmark S&P/ASX 200 Index climbed 0.5 percent to 7,145.10 as miners surged on optimism over China.

The broader All Ordinaries Index rose 0.6 percent to 7,331.20. BHP, Rio Tinto and Fortescue Metals Group jumped 2-3 percent.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index slipped 0.3 percent to 11,880.90.

U.S. stocks rose overnight amid signs of progress on the U.S. debt ceiling bill and receding bets for a rate hike by the U.S. Federal Reserve this month.

In economic releases, manufacturing contracted for a seventh straight month in May and jobless claims increased less than expected last week, while private sector employment rose more than expected in May, separate reports showed.

The tech-heavy Nasdaq Composite surged 1.3 percent and the S&P 500 added 1 percent to reach their best closing levels in over nine months, while the Dow gained half a percent.

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