U.S. avoids devastating default, Asian shares up

Editorial Team
Editorial Team
U.S. avoids devastating default

Asian shares mostly rose on Thursday after U.S. legislators passed a last-minute bill to end a 16-day government shutdown and raise the country’s borrowing limit, avoiding a devastating default that threatened to spark another global recession.

China welcomed the deal, and the head of the International Monetary Fund, Christine Lagarde, called it “important and necessary”, with investors breathing a sigh of relief.

Congress voted through a deal less than a day before a deadline to raise the $16.7 trillion debt limit and the approved measures will fund the government until 15 January and extend the Treasury’s borrowing authority until 7 February.

Tokyo stocks rose 0.83 percent on the news, with Seoul adding 0.29 percent and Sydney climbing 0.38 percent.

Hong Kong however lost 0.57 percent and Shanghai closed down 0.21 percent, as dealers await the release of China’s third-quarter economic growth data on Friday.

Image: © Getty

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The Editorial team at APAC Outlook Magazine is a team of professional in-house editors led by Jack Salter, Head of Editorial at Outlook Publishing.