World stocks gain on US debt deal hopes

Associated Press
In this Thursday, Oct. 10, 2013 photo, trader Sean Spain works on the floor of the New York Stock Exchange. Three days from a deadline to increase the U.S. debt ceiling, investors were fidgety and stocks drifted lower, Monday, Oct. 14, 2013. The U.S. has to increase the amount of debt it can build up by Oct. 17 or else face a possible default on its debt, a scenario that could derail the U.S. economic recovery and roil international markets. (AP Photo/Richard Drew)
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In this Thursday, Oct. 10, 2013 photo, trader Sean Spain works on the floor of the New York Stock Exchange. Three days from a deadline to increase the U.S. debt ceiling, investors were fidgety and stocks drifted lower, Monday, Oct. 14, 2013. The U.S. has to increase the amount of debt it can build up by Oct. 17 or else face a possible default on its debt, a scenario that could derail the U.S. economic recovery and roil international markets. (AP Photo/Richard Drew)

MANILA, Philippines (AP) — Global stock markets rose Tuesday on hopes Washington was moving closer to a deal that would avert a debt default by the U.S. government.

In early European trading, the FTSE 100 index of leading British shares climbed 0.7 percent to 6,552.30 while Germany's DAX was up 0.5 percent to 8,770.44. France's CAC-40 gained 0.5 percent to 4,242.81. Asian stock markets ended their trading sessions mostly higher.

Futures in New York pointed to a higher opening on Wall Street. Dow Jones industrial futures rose 0.1 percent to 15,235 and S&P 500 futures added 0.1 percent to 1,705.30.

Two days from a deadline to increase the U.S. debt ceiling, investors remain focused on developments in Washington. Most think a deal will be reached in time and stock markets were holding up. The U.S. has to increase the amount of debt it can sell by Oct. 17 or face a possible default, a scenario that could derail the U.S. economic recovery and roil international markets.

Investors "are hoping that the US can have a deal done to resolve the debt limit problem in coming days," said Jackson Wong, vice president at Tanrich Securities in Hong Kong.

Negotiations between Republicans and Democrats in the past few days failed to reach a conclusion either on raising the debt ceiling or the partial shutdown of the U.S. government, which has now entered a third week.

Japan's Nikkei 225 closed up 0.3 percent at 14,441.54 and Hong Kong's Hang Seng gained 0.5 percent to 23,336.52. South Korea's Kospi closed 1 percent higher at 2,040.96. Taiwan's stock index gained 1.1 percent to 8,367.88.

China's Shanghai Composite index bucked the trend, down 0.2 percent at 2,233.41.

Wong said recent economic data from China has been mixed, with investors still not sure whether the Chinese economy will stabilize after a prolonged slowdown.

Markets in Indonesia, Malaysia, Singapore and the Philippines were closed for holidays.

In energy trading, benchmark crude for November delivery was down 33 cents at $102.08 a barrel in electronic trading on the New York Mercantile Exchange.

The euro fell to $1.3522 from $1.3554 late Monday. The dollar dropped to 98.60 yen from 98.67 yen.

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