Asian shares, US futures rise on debt ceiling deal

Sydney, May 29 (BNA): Asian stocks and US stock futures rose Monday, thanks to a weekend deal struck by US President Joe Biden and House Speaker Kevin McCarthy to suspend the government’s debt ceiling, end a protracted stalemate and provide some relief to investors. .

After weeks of negotiations, Republican congressmen McCarthy and Biden reached an agreement late Saturday to avert an economically destabilizing default to suspend the $31.4 trillion debt ceiling through 2025.

Reuters reported that the agreement would now have to be passed through a narrowly divided Congress.

Positive news lifted S&P 500 futures 0.2% in Asia while Nasdaq futures rose 0.4%.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3%, after falling 1.1% in the previous week. The Nikkei index in Tokyo rose 1.3 percent to its highest level in 33 years.

In the opposite direction, Chinese bonds fell 0.1% while Hong Kong’s Hang Seng fell 0.3%, dragged down by weekend earnings data from Chinese industrial firms that reinforced growing signs of a loss of momentum in the world’s second-largest economy.


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