Asian Shares Rise On US Debt Deal; Chinese Markets Underperform
Nasdaq (RTTNews) - Asian stocks advanced on Monday after U.S. President Joe Biden and congressional Republican McCarthy agreed on Saturday to avert an economically destabilizing default by suspending the $31.4 trillion debt ceiling until 2025.
The bipartisan agreement now has to clear a divided Congress before the United States runs out of money to pay its debts in early June.
The dollar held firm on growing expectations of further rate hikes by the Federal Reserve and gold traded flat while oil extended Friday's gains to recoup some of last week's losses.
Chinese markets underperformed on doubts over the country's economic recovery after data showed profits at industrial profits in China fell 20.6 per cent in the January-to-April period from the same period the previous year.
China's Shanghai Composite index edged up 0.28 percent to 3,221.45 while Hong Kong's Hang Seng index fell 1.04 percent to 18,551.11.
