HONG KONG: Asian markets rallied yesterday on hopes the United States will avoid a default as President Barack Obama and Republican leaders held their first talks on resolving a budget impasse that triggered a partial government shutdown.
The gains followed Wall Street's best day since January as dealers welcomed progress on ending the crisis with less than a week before Washington runs out of cash to pay its bills.
Tokyo rose 1.48 per cent, or 210.03 points, to 14,404.74, Sydney climbed 1.63 per cent, or 83.8 points, to 5,230.9, while Seoul was 1.17 per cent higher, adding 23.50 points to 2,024.90. Shanghai was up 1.70 per cent, or 37.22 points, at 2,228.15.
The White House said Obama will be open to a short-term debt ceiling hike.
Jack Ablin, chief investment officer at BMO Private Bank, said the developments suggest "both sides appreciate the gravity of a default".
"It's not worth sending our country into a tailspin over ideological differences. I think investors are breathing a sigh of relief," he added.
In other markets: * Taipei
was flat, edging up 4.64 points to 8,349.37. TSMC was 1.43 per cent higher at T$106.5 while Hon Hai fell 0.13 per cent to T$75.4.* Jakarta
ended up 0.74 per cent, or 33.23 points, at 4,519.91. Food maker Indofood Sukses Makmur rose 4.48 per cent to 7,000 rupiah, while Bank Permata fell 0.71 per cent to 1,390 rupiah. * Wellington
rose 0.50 per cent, or 23.39 points, to 4,740.77. Fletcher Building was up 0.42 per cent at NZ$9.46, Air New Zealand added 0.68 per cent to NZ$1.49 and Telecom climbed 0.66 per cent to NZ$2.30.* Mumbai
rose 1.26 per cent or 255.68 points to 20,528.59 points. Coal India was down 3.88 per cent, or 11.40 rupees, at 282.60 rupees and real estate group Unitech was up 8.10 per cent, or 1.45 rupees, at 19.35 rupees. * Bangkok
gained 0.40 percent, or 5.87 points, to 1,457.78. Bangchak Petroleum added 1.49 per cent to 34.00 baht while Siam Makro jumped 1.52 per cent to 33.50 baht.* Manila
closed 0.84 per cent higher, adding 53.83 points to 6,489.80. Metropolitan Bank was up 1.76 per cent at 86.85 pesos and Universal Robina rose 0.17 per cent to 121 pesos, while SM Investments added 1.38 per cent to 847 pesos. AFP