Asian shares rise on debt bill progress, Fed pause hopes

Asian stocks surged on Friday as the progress on the bill to raise U.S. debt ceiling and increasing hopes that the Federal Reserve might stand still on interest rates in its next meeting helped perk up investor appetite for risky assets.

The U.S. Senate is on track to pass a bill to lift the government’s $31.4 trillion debt ceiling late on Thursday in Washington, Democratic Majority Leader Chuck Schumer said, after the House of Representatives passed the bill on Wednesday.

The Treasury Department has warned it will be unable to pay all its bills on June 5 if Congress fails to act.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) spiked 1.13% higher. Australia’s S&P/ASX 200 index (.AXJO) rose 0.57%, while Japan’s Nikkei (.N225) was 0.71% higher.

China shares have been hamstrung by worries over stuttering post COVID-19 recovery. The Shanghai Composite Index (.SSEC) was set to open 0.2% higher while, Hong Kong’s Hang Seng index (.HSI) was set to open up 2% higher.

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