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Summary Asian stocks rose Tuesday as investors anticipated a compromise would resolve the US debt deadlock.
Asian stocks mostly rose Tuesday as investors anticipated a compromise would resolve the US debt deadlock even as President Barack Obama described his country as being dangerously close to default.The United States has until August 2 now just a week away to reach a deal to increase the amount the country can borrow or face not being able to pay its bills. That has led to fears the worlds largest economy could default on its financial obligations and spread shock waves throughout the world.Both Obama and Speaker of the House of Representatives, Republican John Boehner, spoke to Americans on Monday. Obama said a compromise was needed to avoid a reckless and irresponsible outcome. Boehner appeared to dig in his heels, saying Obama would not get what he seeks.Japans Nikkei 225 stock average rose marginally to 10,054.34. Hong Kongs Hang Seng Index gained 0.8 percent to 22,468. South Koreas Kospi added 0.3 percent to 2,155.98.Markets in Australia, Taiwan, and Indonesia also rose while Singapore and Malaysia fell.Chinas Shanghai Composite Index declined 0.1 percent to 2,685.22. The index fell 3 percent Monday following a weekend high-speed train crash that killed 38 people.Most investors view that at the last minute the two parties can get some sort of compromise, said Peter Lai, director at DBS Vickers in Hong Kong, explaining the resilience of Asian markets in the face of Washingtons gridlock.Democrats are seeking a combination of spending cuts and revenue increases to solve the debt crisis, while Republicans have vowed that any compromise must not include higher taxes.
