Asian markets turned higher on Thursday as Donald Trump’s Deal to raise the US debt ceiling gave investors some much-needed good news after the North Korea-fuelled sell-off this week.
While tensions over Pyongyang’s weekend nuclear test remain high, Trump’s insistence to Chinese counterpart Xi Jinping that military action was not his “first choice” and a call for a diplomatic solution provided some solace for now.
Trump agreed a deal with his Democrat rivals to ease the US borrowing limit until December 15 in order to avert a crippling shutdown of the government and also provide funding to help the recovery from Hurricane Harvey in Texas and Louisiana.
“We essentially came to a deal, and I think the deal will be very good,” he said after meeting leaders of both parties in the Oval Office.
During the talks Republicans had called for a long-term deal before Trump shocked the room by jumping in to back Democrats’ short-term fix.
The news provided a lift to Asian investors and raised hopes again for the president’s market-friendly economic agenda, including tax reform and infrastructure spending.
“Republican back-room squabbling aside I think we all have to agree with Senate Democrat Minority Lead Schumer that this was ‘a positive step forward’,” said OANDA head of Asia Pacific trading Stephen Innes.
Yahoo News via AFP
This post first appeared on MarketPulse - MarketPulse - MarketPulse Is The Mar, please read the originial post: here