Asia markets rise after Biden signs debt ceiling bill; oil surges on OPEC+ cuts

Asia-Pacific markets are largely higher after U.S. President Joe Biden signed into law a debt ceiling bill that allowed the U.S. to avert defaulting on its financial obligations over the weekend.

The compromise debt ceiling bill passed the Senate by a 63-36 margin Thursday evening, winning enough support from both parties to overcome the chamber’s 60-vote threshold to avoid a filibuster. On Wednesday, it moved through the House after about 72 hours, passing 314-117.

Hong Kong’s Hang Seng index saw a 0.54% gain on Monday, extending its rally from the 4% gain recorded in Friday’s session. Mainland China markets bucked the trend, with the Shanghai Composite up marginally and the Shenzhen Component declining 0.62%.

Oil futures also surged as the Organization of the Petroleum Exporting Countries (OPEC) kingpin Saudi Arabia’s decision to cut oil production by another million barrels per day.

In Japan, the Nikkei 225 rose further after leading its global peers for the month of May, gaining 1.82% to trade at a new year-high, and as the Topix was 1.5% higher. The next level to watch for investors will be the 32,000 mark, which would bring the benchmark index to the highest since 1989.

South Korea Kospi inched up 0.58% and the Kosdaq gained 0.4%. Australia’s S&P/ASX 200 was up 1.08%, ahead of the country’s central bank rate decision tomorrow.

In the U.S. on Friday, all three major indexes gained over 1%, with the Dow Jones Industrial Average jumping 2.12% for its best day since January.

The S&P 500 climbed 1.45%, while the Nasdaq Composite advanced 1.07%, reaching its highest level since April 2022 during the session.

— CNBC’s Samantha Subin and Alex Harring contributed to this report