Most Asian Equities Rise as US Debt-Ceiling Talks End Positively, but Without a Deal

Stocks in Asia rallied on Tuesday as talks between the U.S. President Joe Biden and House Speaker Kevin McCarthy concluded optimistically but without a deal.

The Nikkei 225 in Japan was 0.65% higher at 9:31 AM Bangkok time, and the Kospi in South Korea was 0.58 points higher.

In Australia, the S&P/ASX 200 gained 0.17% even as the country’s composite purchasing managers index saw a softer expansion in May, according to Juno Bank.

The Hang Seng index in Hong Kong fell by 0.23%, and the Shanghai Composite dropped by 0.51% in mainland China.

House Speaker Kevin McCarthy said he had a “productive” and “professional” meeting, adding that “I think the tone tonight was better than any other night we’ve had discussions,” McCarthy said outside the West Wing following the hour-long meeting.

Biden, in a statement on Monday night, agreed that the session had been “productive.”

“We reiterated once again that default is off the table and the only way to move forward is in good faith toward a bipartisan agreement,” he said.

The three major U.S. indices finished yesterday’s session with a mixed performance, although the Nasdaq Composite rose 0.5% to its highest closing and best intraday record since August.

The S&P 500 was up 0.02% on Monday, while the Dow Jones Industrial Average was down 0.42%.

The release of Singapore’s April inflation data and private polls on manufacturing and services activity in Australia and Japan will be closely watched by Asian markets.