Higher-yielding
"riskier" currencies also rose on hopes of progress on a resolution
over the package of tax hikes and spending cuts due on January 1 that will
likely tip the US economy back into recession.
Tokyo added 0.99 per cent, or
92.53 points, to 9,400.88, Sydney was 0.68 per cent, or 30.4 points, higher at
4,477.7, and Seoul climbed 1.15 per cent, or 22.07 points, to 1,934.85.
Hong Kong also rose 0.99 per
cent, picking up 213.91 points to 21,922.89 but Shanghai fell 0.51 per cent, or
10.04 points, to 1,963.49, a near four-year low.
With the focus now almost
entirely on Washington, House of Representatives speaker John Boehner on
Wednesday said he was optimistic of a deal between his Republicans and their
Democratic rivals.
Later in the day, US President
Barack Obama also said he expected a solution would be found before Christmas.
"Our ultimate goal is an
agreement that gets our long-term deficit under control in a way that is fair
and balanced," Obama said.
"I believe that both parties
can agree on a framework that does that in the coming weeks," he said.
"In fact, my hope is to get this done before Christmas."
Treasury Secretary Timothy
Geithner's office said he would meet members of Congress on Thursday to discuss
"a balanced approach to reduce our deficit".
"They have a relatively
tight deadline to sort this out. I think they will, because it is in nobody's
interests to push the economy off the rails," said Joe Bracken, head of
macro strategies at BT Investment Management in Sydney.
"You will have a lot of 'he
said, she said' over the next few weeks, and markets will remain
volatile," he told Dow Jones Newswires.
Wall Street was higher on
Wednesday.
The Dow climbed 0.83 per cent,
the S&P 500 gained 0.79 per cent and the Nasdaq added 0.81 per cent.
The news came as relief to
markets, which had been spooked by comments on Tuesday from Democratic Senate
Majority Leader Harry Reid that "little progress" had been made in
cross-party talks.
On forex markets, investors sold
the safe haven yen, which has been falling in recent weeks after the man who is
widely expected to become prime minister following next month's polls said he
would embark on aggressive monetary easing.
The euro was at US$1.2966,
compared with US$1.2939 in New York late Wednesday, while it was also at 106.56
yen, from 106.14 yen.
The dollar bought 82.16 yen, from
82.03 yen.
Oil prices rose. New York's main
contract, West Texas Intermediate for January delivery, was up 44 cents to
US$86.93 a barrel in the afternoon, and Brent North Sea crude for January
climbed 30 cents to US$109.81.
Gold was at US$1,724.60 at 1030
GMT compared with US$1,740.80 late Wednesday.
In other markets, Taipei rose
0.92 per cent, or 68.62 points, to 7,503.55; Manila closed 0.12 per cent
higher, adding 6.73 points to 5,640.45; Wellington ended 0.12 per cent higher,
adding 4.62 points to 4,016.77; Jakarta rose 0.33 per cent, or 14.26 points, to
4,319.09; Bangkok added 0.74 percent, or 9.63 points, to 1,309.57; Kuala Lumpur
ended flat, inching up 0.8 points to close at 1,607.32; and Mumbai gained 1.75
per cent, or 328.83 points, to 19,170.91.
- AFP/ms
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