Sharjah 24 – AFP: Asian markets built on a global rally Friday after US lawmakers voted to avert a catastrophic debt default, while attention now turns to the release of key jobs data later in the day that could determine the Federal Reserve's plans for tapering monetary policy.
An advance in mainland Chinese stocks also provided some solace as the country reopened after a week-long break, with investors keenly following developments in the crisis at troubled developer Evergrande.
News that Republicans had agreed to lift the US borrowing limit provided some much-needed relief to markets, which had been growing increasingly worried that the government would run out of cash in a few days and fail to meet its debt obligations.
Experts had warned such a scenario would have led to a historic default, plunging the world's biggest economy into recession and causing a global financial crisis.
While the deal means there will only be enough cash to last until December -- leaving open the possibility of another standoff within months -- investors are happy to buy up some bargains after a recent run of hefty losses across global equities.
Tokyo, Hong Kong, Sydney, Seoul, Taipei, Singapore, Wellington, Manila and Jakarta all rallied.
Shanghai also put on a positive showing in the first day of trade since last Thursday, with investors keeping a close eye on moves in the Evergrande saga as it struggles under liabilities worth more than $300 billion.
Concern now turns to the Fed's plans to begin withdrawing its huge financial support measures put in place at the start of the pandemic, which have been key to a strong recovery in economies and markets.
For an optimal experience, please
