Asian shares tentative, US debt ceiling talks weigh on risk appetite

Asian shares were subdued on Wednesday and the dollar hovered around a five-week peak as investors remained risk averse, with the U.S. debt ceiling talks and a mixed set of economic data weighing on sentiment.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was 0.20% lower, while Australia’s S&P/ASX 200 index (.AXJO) was down 0.56%. The Shanghai Composite Index (.SSEC) and Hong Kong’s Hang Seng Index (.HSI) eased 0.4%, dragged by China data showing a wobbly post-COVID recovery.

Japan’s Nikkei (.N225), however, spiked 0.68% higher, scaling above 30,000 for the first time since September, 2021.

Democratic President Joe Biden and top congressional Republican Kevin McCarthy edged closer to a deal to avoid a looming U.S. debt default Tuesday.

After an hour of talks, McCarthy, the speaker of the House of Representatives, told reporters the two sides remained far apart on an agreement to lift the debt ceiling.

This report’s information was first seen on REUTERS; to read more, click this link.