Asian markets track Wall St rally as US default averted, for now
Asian markets rallied Thursday as investors breathed a sigh of relief that the United States looked set to avert a catastrophic debt default after Republicans offered a deal to raise the country’s borrowing limit.
Joe Biden and Xi Jinping’s decision to hold a virtual meeting also provided a much-needed boost to trading floors that have been starved of good news in recent weeks as they battle a string of problems including surging inflation, an expected taper of monetary policy and a growing energy crisis.
With just days to go before the United States runs out of cash, top Senate Republican Mitch McConnell proposed a truce, meaning Democrats can vote to hike the debt ceiling and allowing the government to pay its bills until December.
Democrats indicated their support for the move, which would mean avoiding missing US repayment obligations, which many experts and top officials including…