SYDNEY: Asian stocks advanced on Friday after the US Senate passed a bipartisan bill to raise the debt ceiling into 2025 and cut the deficit, the final hurdle for the US to avoid default on its debt, reported dpa-AFX.
Hopes of an economic recovery in China and hopes of a pause in the US 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 US central bank “should at least skip this meeting in terms of an increase.”
Gold was unchanged ahead of the all-important US jobs data due later in the day, while oil prices rose over 1 per cent 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 will soon deliver the much- needed stimulus to boost growth. The benchmark Shanghai Composite index climbed 0.79 per cent to 3,230.07. Hong Kong’s Hang Seng index soared 4.02 per cent to 18,949.94, led by gains in property developers, tech and consumer stocks.
Tencent Holdings surged 5.8 per cent and Alibaba Group Holding jumped 6.5 per cent on reports that Nvidia 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 average climbed 1.21 per cent to 31,524.22 while the broader Topix index ended 1.55 per cent higher at 2,182.70. Tech investor SoftBank Group surged 4.3 per cent on speculation that its chip unit will benefit from a boom in artificial intelligence investment. T&D Holdings jumped 4.3 per cent 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 average gained 1.25 per cent to close at 2,601.36.
Australian markets rose in cautious trade ahead of the RBA policy meeting next week. The benchmark S&P/ASX 200 inched up 0.48 per cent to 7,145.10 as miners surged on optimism over China. The broader All Ordinaries index edged up 0.56 per cent to 7,331.20. BHP, Rio Tinto and Fortescue Metals Group rose 2-3 per cent.
Across the Tasman, New Zealand’s benchmark S&P/NZX-50 index slipped 0.30 per cent to 11,880.90.
US stocks rose overnight amid signs of progress on the US debt ceiling bill and receding bets for a rate hike by the US 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 per cent and the S&P 500 added 1 per cent to reach their best closing levels in over nine months while the Dow gained 0.5 per cent. -Bernama
