Asian stocks rise as debt ceiling bill approved

Asian markets rose after Biden signed debt ceiling bill. Asia-Pacific markets rose broadly after U.S. President Joe Biden signed the debt ceiling bill over the weekend, which will ensure that the U.S. defaults on its financial obligations. The compromise debt ceiling bill passed the Senate 63-36 on Thursday evening, garnering enough support from both parties to clear the House’s 60-vote threshold. It passed the House 314-117 about 72 hours later on Wednesday. Hong Kong’s Hang Seng index rose 0.26 percent on Monday, extending a rally from a 4 percent gain on Friday. Mainland Chinese markets bucked the trend, with the Shanghai Composite Index falling marginally and the Shenzhen Component Index down 0.25 percent. Oil futures also rose after the Organization of the Petroleum Exporting Countries (OPEC) led Saudi Arabia in cutting oil output by another million barrels a day. Japan’s Nikkei 225 rose 1.67 percent after leading its global peers in May, while the Topix opened 1.4 percent higher. The next level for investors to watch is 32,644, which would break its highest level since July 1990. South Korea’s Kospi rose 0.32 percent and the Kosdaq was marginally higher. Australia’s S&P/ASX 200 rose 1.07 percent ahead of tomorrow’s interest rate decision by the country’s central bank. ANZ analysts predict $100 for oil In their assessment, they emphasized that Brent crude could rise to $100, which they had previously indicated, if the Fed halts interest rate hikes and macroeconomic headwinds ease, supported by Saudi Arabia’s production cuts. Commonwealth Bank of Australia analysts predict Brent prices of $85/barrel in the fourth quarter of 2023, while Goldman Sachs forecast prices of $95/barrel for December 2023.