Investing.com - Asian shares mostly gained on Thursday with hopes for a temporary extension of the U.S. debt ceiling to December and upbeat markets on Wall Street aiding sentiment.
President Donald Trump on Wednesday broke with his party to support a package that included a short-term debt ceiling extension. If Congress passes the package, which also includes relief funding for Hurricane Harvey, it would prevent a default on the federal debt.
Ahead, markets awaited the European Central Bank's interest rate decision expected later Thursday. While President Mario Draghi had previously remarked that the central bank's quantitative easing program would be discussed in "the fall," new announcements on the program could only come in October.
Japan's Nikkei 225 rose 0.11%, while South Korea's Kospi gained a sloid 1.07%. In Australia, the S&P/ASX 200 rose 0.12%. Australia reported its trade balance surplus for July narrowed sharply to A$460 billion, compared with a surplus of A$875 million seen.
In Greater China, Hing Kong's Hang Seng index rose 0.11% and trhe Shanghai Composite eased 0.11%.
Overnight, U.S. stocks rose on Wednesday, as investors cheered news that President Donald Trump agreed to raise the debt ceiling and extend government funding through Dec.15, avoiding government shutdown.
The Dow Jones Industrial Average closed higher at 21,807. The S&P 500 closed 0.31% higher while the Nasdaq Composite closed at 6393.31, up 0.28%.
"We have an extension, which will go out to December 15th. That will include debt ceiling, that will include (short-term spending for the coming fiscal year) and it will include Harvey, the amount of money to be determined," Mr Trump told reporters aboard Air Force One.
The positive news overshadowed renewed geopolitical tensions after the US asked the UN Security Council to freeze the assets of North Korea’s leader Kim Jong-un and slap an oil embargo on the country, according to a US-drafted resolution circulated on Wednesday.
On the economic data front, investors mulled over a rebound in services sector activity in August.
The Institute for Supply Management's index registered 55.3 in August. This was a reversal from a decline in July, when the index hit 53.9.
A reading above 50 for the index indicates expansion in the service sector, and a reading below 50 indicates contraction.
Meanwhile, a surge in energy underpinned the positive day on Wall Street, as crude oil futures continued their post-Harvey rally ahead of inventory data from the Energy Information Administration due Thursday.