Asian stocks rallied on Friday, with the Hang Seng Index in Hong Kong leading the gains, as investors closely watched the latest developments in the US job market. The positive sentiment was fueled by news of the US Senate passing a bill to raise the debt ceiling, alleviating concerns of a potential default on US debt.
In Tokyo, the Nikkei soared to its highest level in 33 years, closing at 31,524.22 points, up 376.21 points or 1.21%. The market reacted positively to the news of the debt ceiling bill, which is expected to help the US avoid a historic default on its debt obligations.
Similarly, in Australia, both the S&P/ASX 200 and the All Ordinaries indexes ended the day in positive territory. The S&P/ASX 200 closed at 7,146.20 points, up 35.40 points or 0.50%, while the All Ordinaries closed at 7,331.30 points, up 40.60 points or 0.56%. The passage of the debt ceiling bill in the US Senate provided a boost to investor confidence.
In South Korea, the Composite Index (KOSPI) reached a one-year high, closing at 2,601.36, up 32.19 points or 1.25%. The tech sector led the market higher, with investors anticipating that the Federal Reserve will maintain its current interest rates at its upcoming meeting. The positive impact of the debt ceiling bill also contributed to the market’s gains, and the Korean won strengthened against the US dollar.
China’s Shanghai Composite closed at 3,230.07 points, up 25.43 points or 0.79%. The market followed the overall trend in Asian stocks, buoyed by the news of the US debt ceiling expansion. This development helped allay concerns of a potential US government default.
Meanwhile, Hong Kong’s Hang Seng Index surged 4.02% to close at 18,949.94, up 733.03 points. Investors anticipated that the Federal Reserve would maintain its current interest rates during its upcoming meeting. Additionally, the passage of the debt ceiling bill by the US Senate further boosted investor sentiment.
Investors will continue to closely monitor the release of US jobs data, which is expected to provide insights into the strength of the labor market recovery. Any significant developments in this regard may further impact the direction of Asian markets in the coming sessions.