WELLINGTON: Asian stocks are likely to be boosted on Monday by the prospect that U.S. lawmakers will reach a deal to avert a debt default, thus improving the appetite for riskier assets.
U.S. stock futures jumped and the dollar rebounded in a sign of relief that progress was being made on a deal to cut spending and raise the debt ceiling was that would allow the country to continue to borrow money.
Markets were anticipating good news with S&P 500 futures up around 1.2 percent and gold , which has reached new heights during the stalemate, easing 0.7 percent.
However, caution remained with House Democratic Leader Nancy Pelosi saying that not all Democrats might be able to support the mooted deal, which is reported to include $3 trillion in cuts and a lift in the debt ceiling.
On Friday, Wall Street had ended its worst week in a year, with the main indices down between 0.4 percent and 0.8 percent, and the CBOE Market Volatility Index, a gauge of investor fear, jumped as much as 9 percent to its highest level since mid-March before paring its rise.
Sentiment was further soured by data showing the U.S. economy stumbled in the first half of the year, and was close to contracting in the January-March quarter.
Asian stocks listed on Wall Street were flat while world stocks, as measured by the MSCI world equity index, eased 0.5 percent.
British shares fell 1 percent while European ''shares were down 0.65 percent.
In early Asia-Pacific trade the U.S. dollar has picked itself up off the floor posting modest gains against the safe haven yen and Swiss franc.
Japanese markets will likely be cautious ahead of a confirmed U.S. debt deal, with Nikkei futures traded in Chicago unchanged from the last closing level in Osaka.
Australian stocks may open higher on the debt optimism but share price index futures are down 0.1 percent to 50.6 point discount to the close of the underlying S&P/ASX 200 index. ' Reuters
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U.S. stock futures jumped and the dollar rebounded in a sign of relief that progress was being made on a deal to cut spending and raise the debt ceiling was that would allow the country to continue to borrow money.
Markets were anticipating good news with S&P 500 futures up around 1.2 percent and gold , which has reached new heights during the stalemate, easing 0.7 percent.
However, caution remained with House Democratic Leader Nancy Pelosi saying that not all Democrats might be able to support the mooted deal, which is reported to include $3 trillion in cuts and a lift in the debt ceiling.
On Friday, Wall Street had ended its worst week in a year, with the main indices down between 0.4 percent and 0.8 percent, and the CBOE Market Volatility Index, a gauge of investor fear, jumped as much as 9 percent to its highest level since mid-March before paring its rise.
Sentiment was further soured by data showing the U.S. economy stumbled in the first half of the year, and was close to contracting in the January-March quarter.
Asian stocks listed on Wall Street were flat while world stocks, as measured by the MSCI world equity index, eased 0.5 percent.
British shares fell 1 percent while European ''shares were down 0.65 percent.
In early Asia-Pacific trade the U.S. dollar has picked itself up off the floor posting modest gains against the safe haven yen and Swiss franc.
Japanese markets will likely be cautious ahead of a confirmed U.S. debt deal, with Nikkei futures traded in Chicago unchanged from the last closing level in Osaka.
Australian stocks may open higher on the debt optimism but share price index futures are down 0.1 percent to 50.6 point discount to the close of the underlying S&P/ASX 200 index. ' Reuters
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