Asian stocks rise on debt ceiling deal hopes

Asian stocks rose as Wall Street rose on hopes for a debt ceiling deal. Asia-Pacific stocks rose on hopes that U.S. President Joe Biden and congressional leaders are inching closer to a deal to raise the U.S. debt ceiling and avoid default. House Speaker Kevin McCarthy said a deal “is possible by the end of the week,” adding that a “better process” for further negotiations had begun. The White House said Biden was cutting short his Asia trip to focus on the talks. Japan’s Nikkei 225 rose 1.46 percent and the Topix rose 1.03 percent as investors weighed more of Japan’s April trade data. Imports fell more than expected, while exports also missed economists’ forecasts. In morning Asian trade, South Korea’s Kospi rose 0.62 percent and the Kosdaq rose 0.11 percent. Stocks also rose in Australia, with the S&P/ASX 200 up 0.55% and the country’s unemployment rate hitting 3.7% in April, beating economists’ expectations of 3.5%. “A second day of softer domestic data in a row should be enough to prevent a hawkish RBA from raising rates again at its June meeting,” IG analyst Tony Sycamore said in an email. Hong Kong’s Hang Seng index rebounded from a late sell-off on Wednesday and rose 1.3%. Mainland Chinese markets also rose, with the Shenzhen Composite up 0.18% and the Shanghai Component Index up 0.44%. Stocks on Wall Street ended higher on Wednesday, with all three major indexes up more than 1% and the Nasdaq Composite up 1.28%. The Dow Jones Industrial Average rose 1.24% and the S&P 500 rose 1.19%.