A majority of Asian stocks are up on optimism for a US debt settlement, while China is down


Asian shares mostly rose on Monday as hopes of US lawmakers striking a deal in last-minute talks to avert a debt default bolstered investor sentiment, though unsureness remained as to whether a breakthrough could be made.

China’s benchmark Shanghai Composite index ended lower, declining 0.2% on news that the US government shutdown was set to enter a third week and Republican lawmakers remained divided over a deal.

Japan’s Nikkei 225 average edged higher by 0.3%, led by Matsushita Electric Industrial and Canon, as investors grew more optimistic that the US debt ceiling will be raised in time.

Hong Kong’s Hang Seng index, however, bucked the trend, declining 0.3% after weak China manufacturing data weighed on investor sentiment. South Korean shares rose, with Samsung Electronics and Hyundai Motor up.

Australian shares gained 0.4%, boosted by hopes of a debt deal in the US. However, instability in Middle Eastern tensions continued to weigh on investor sentiment.