Asian markets rallied on Thursday, following Wall Street’s lead, as investors drew comfort from signs that the United States might be close to a deal to raise the debt ceiling and avert a disastrous default. Japan’s Nikkei surged to a fresh 20-month peak, while Hong Kong’s Hang Seng gained 0.93%. Australia’s stock benchmark rose 0.59%, and the Aussie dollar suffered following an unexpected fall in employment in April. The dollar held just below a two-month high versus the yen, and long-term U.S. Treasury yields eased back. Gold found its feet around $1,984 per ounce, while oil eased a little after Wednesday’s $2 rallies for both Brent and West Texas Intermediate (WTI) crude. With President Joe Biden and top U.S. congressional Republican Kevin McCarthy pledging to negotiate directly on a deal, investors remain optimistic that a deal will be reached soon.
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