Stocks in Asia were broadly higher in choppy trading as the House passed a deal to avert US default and investors weighed the prospect of a pause in rate hikes from the Federal Reserve this month.
A gauge of Asian shares headed for its best day in four weeks as Japanese and Australian shares rose while those in South Korea edged lower.
Benchmarks in China climbed, helped along by Caixin manufacturing data on Thursday that showed an expansion in activity, exceeding forecasts of a small contraction.
The numbers followed official figures Wednesday that showed a further contraction in activity, weighing on the country’s equity markets.
For the Chinese economy “things are not getting worse outside of the growth momentum — but it’s not getting better,” Wendy Liu, chief Asia and China equity strategist for JPMorgan Chase & Co., said in an interview with Bloomberg Television.
However, the economy will be “firmly in recovery in the second half,” she added. US equity futures traded in and out of positive territory after an initial boost following news of the deal passing the House. The mixed picture suggests investors were taking more notice of Fed officials who backed the possibility of holding rates unchanged the next meeting. -BLOOMBERG
