Asian stocks jumped to three-week highs on Friday as investors took a chance and cheered perceived progress in Washington to avert a possible default, even though questions remained over whether a deal could be struck.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3 percent, reaching highs not seen since September 19. Tokyo's Nikkei was also 1.3 percent higher.
Gains were seen across the region's emerging markets, with Indonesian shares rising 0.6 percent and the Philippines up 0.9 percent. MSCI's broad emerging benchmark equity index put on 0.8 percent.
The rally in Asia came after U.S. stocks jumped over 2 percent in their biggest one-day gain since January 2 as investors became more confident that squabbling U.S. politicians would at the very least avert a possible U.S. debt default next week.
"The situation is fluid but it seems like progress is being made on averting the worst case scenario. But a short-term solution should be met with short-term enthusiasm," analysts at Nomura wrote in a client note.
Source: Reuters
