Asian stock markets gain after United States default deal
Tokyo closes up 1.34%, Manila + 1.04. Positive openings in Hong Kong and Mumbai.
Tokyo (AsiaNews / Agencies) - Asian markets rallied with relief following a last minute deal over the U.S. debt announced last night by President Barack Obama. The new agreement, which avoids a technical default, provides for a 2.4 billion dollar increase in the debt ceiling of 14.3 billion dollars and a deficit reduction of about one million dollars over the next 10 years, as well a further 1.5 billion dollar cut in spending by 2021.
Thus, the Tokyo Stock Exchange ended trading with gains upwards of 1.34%. The Nikkei index rose 9965.01 with a gain of 131.98 points, with bonds for investors even on financial accounts released by Corporate Japan companies, such as Sumitomo Mitsui, Mizuho, Mitsubishi UFJ and Nomura. The dollar, meanwhile, recovered ground especially against the yen, reaching 77.68 yen.
The Manila Stock Exchange also closed with considerable gains, with the PSE index (Philippine Stock Exchange) rising by 46.9 points or 1.04% to 4550.53. The All share index gained 23.78 points, or 0.76%, to 3146.84. A currency exchange of 5.06 billion pesos (119.93 million dollars).
The positive trend has also begun to have effects on other markets. The Indian market of Mumbai, the Sensex, was up 18.352.23 (+0.85%), Hong Kong’s Hang Seng Index is rising by 1.5%.
"The sword of Damocles has been lifted from the head of the Asian market - says PK Basu, director of Daiwa Capital Markets in Singapore - but we must continue to keep an eye on the American job market." According to the analyst, if the figures are disappointing "stock markets will come under pressure again".
Further concerns relate to the spending cuts of more than one million dollars – to be spread the next 10 years - which could have an impact on the economy. However, Obama has assured that the cuts will occur in the short term, so as not to sink the fragile economy of the United States.
Thus, the Tokyo Stock Exchange ended trading with gains upwards of 1.34%. The Nikkei index rose 9965.01 with a gain of 131.98 points, with bonds for investors even on financial accounts released by Corporate Japan companies, such as Sumitomo Mitsui, Mizuho, Mitsubishi UFJ and Nomura. The dollar, meanwhile, recovered ground especially against the yen, reaching 77.68 yen.
The Manila Stock Exchange also closed with considerable gains, with the PSE index (Philippine Stock Exchange) rising by 46.9 points or 1.04% to 4550.53. The All share index gained 23.78 points, or 0.76%, to 3146.84. A currency exchange of 5.06 billion pesos (119.93 million dollars).
The positive trend has also begun to have effects on other markets. The Indian market of Mumbai, the Sensex, was up 18.352.23 (+0.85%), Hong Kong’s Hang Seng Index is rising by 1.5%.
"The sword of Damocles has been lifted from the head of the Asian market - says PK Basu, director of Daiwa Capital Markets in Singapore - but we must continue to keep an eye on the American job market." According to the analyst, if the figures are disappointing "stock markets will come under pressure again".
Further concerns relate to the spending cuts of more than one million dollars – to be spread the next 10 years - which could have an impact on the economy. However, Obama has assured that the cuts will occur in the short term, so as not to sink the fragile economy of the United States.
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