Asian markets trade higher on 10 October (Reuters)
Markets across Asia traded over 1% higher on 11 October on renewed optimism that US politicians would negotiate a truce before 17 October, and avert a debt default.
The Japanese Nikkei finished 1.48% higher or 210.03 points at 14,404.74.
Australia's S&P/ASX finished 1.63% higher or 83.80 points at 5,230.90.
South Korea's Kospi finished 1.17% higher or 23.50 points at 2.024.90.
The Shanghai Composite was trading 1.70% higher or 37.22 points to 2,228.15.
Hong Kong's Hang Seng was trading 1.23% higher or 283.04 points to 23,234.34.
India's BSE Sensex was trading 0.81% higher or 164.04 points to 20,436.95.
On 10 October, late night discussions at the White House failed to produce a fiscal truce between the Democrats and the Republicans.
However, both sides appeared inclined to push for an early solution.
Key Republicans led by House Speaker John A Boehner held discussions at the White House, where they presented a plan to extend the borrowing powers to another six weeks in return for the government's assurance on opening talks on long-term spending cuts and a tax overhaul.
US President Barack Obama did not immediately accept a Republican proposal for a short-term extension of the Treasury's borrowing powers, which would avert a debt default, as the Republicans would not tie it with a plan to re-finance the government stalled for more than ten days.
The US government shutdown will enter its 11th day on 11 October and Congress has seven days to decide whether to raise the US debt limit.
The world's largest economy could run out of cash to pay its bills after 17 October if the government's borrowing limit is not raised. The country's laws limit its borrowing to $16.7tn (£10.4tn, €12.3tn).
Following the meeting, Republican and Vice Chair of the House Republican Conference Lynn Jenkins, said, "Opening the government is a negotiation that will happen [on 10 October] and in the hours ahead, we hope to have it open by [15 October]."
"Asian markets are acting like we have already seen agreement on extending the debt ceiling through to 22 November. However, it almost seems as if they are also assuming an end to the shutdown could also be worked into an agreement," said Chris Weston, market strategist at IG.
Wall Street Jumps 2%
On Wall Street, indices ended over 2% higher on 10 October amid anticipation that the Republicans and the Democrats were moving close towards a deal.
The Dow finished 323.09 points higher or 2.18% at 15,126.07.
The S&P 500 closed 36.16 points higher or 2.18% at 1,692.56.
The Nasdaq ended 82.97 points higher or 2.26% at 3,760.75.
The CBOE Volatility Index (VIX), broadly viewed as the best gauge of fear in the market, tumbled to about 16, after striking a seven-week high of 21 earlier in the week.
Company Stock Movements
In Tokyo, index heavyweight Fast Retailing fell 4.6% after the firm issued a downbeat forecast for the current financial year. However, the stock has gained some 46% in the year so far.
Rival Takashimaya gained 1.7% on the back of solid earnings.
Industrial robotics manufacturer Fanuc and camera maker Nikon gained over 4% each.
In Shanghai, state-owned Changan Auto shot up 10% while rival SAIC Motor added 4% on news that vehicle sales in China rose 19.7% year-on-year in September.
Shanghai Lujiazui Finance surged 10% on news that it would develop an internet-based financial services platform.
In Mumbai, IT major Infosys jumped 6.6% and struck its highest level since January 2011. The firm raised the lower-end of its fiscal 2014 dollar revenue growth forecast.
HCL Technologies added 3% while Tata Consultancy Services added 1.6%.
In Sydney, Westpac gained 2.5% on news that it would acquire Lloyds Banking Group's Australian assets for $1.3bn.
The news boosted banking sector stocks. National Bank of Australia and Australia New Zealand Banking gained over 2% each.
Miners Atlas Iron jumped nearly 4% while Anglo-American rival Rio Tinto finished 2.3% higher on the back of an increase in copper prices.
In Seoul, index heavyweight Samsung Electronics added 1% while rival LG Electronics gained 2%.
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