Most Asian stock markets rose on Monday as the Group of Seven summit in Hiroshima ended and discussions on the U.S. debt ceiling are set to resume.
As of 9:36 a.m. Bangkok time, the Hang Seng index in Hong Kong was up 1.23%, while the Shanghai Composite on the mainland was up 0.3% after the People’s Bank of China did not raise its prime rate for 1-year or 5-year loans.
After falling earlier, South Korea’s Kospi has recovered to rise 0.85%.
The Nikkei 225 in Japan was up 0.10%. The S&P/ASX 200 index in Australia lost 0.37%.
The U.S. Wall Street slumped on Friday after GOP negotiators abruptly halted negotiations on the U.S. debt ceiling, raising doubts that a compromise would be achieved soon with the S&P 500 having its best week since March. Dow Jones Industrial Average dropped 0.33%, while the Nasdaq Composite fell 0.24%.
Federal leaders are expected to continue with negotiations on the U.S. debt ceiling on Monday as the country approaches a potential default.
President Joe Biden and House Speaker Kevin McCarthy, R-Calif., are scheduled to meet in person at the White House.
Treasury Secretary Janet Yellen said Sunday that “hard choices” will need to be made about which bills will go unpaid if the debt ceiling is not raised and reaffirmed her warning that the United States could default on its debt as early as June 1,
Meanwhile, U.S. Federal Reserve Chairman Jerome Powell has said that present pressures in the banking industry may mean that interest rates may not require a rise as much as projected to contain inflation.