|HK and regional markets find support from signs of US budget and debt deal in the making
Asian markets broadly rallied as US lawmakers near a budget deal to reopen the government and raise the borrowing limit to avoid a catastrophic default.
Republicans and Democrats said they were close to an agreement to end a stand-off that has shut the US government for two weeks.
Hong Kong gained 0.51 percent. The benchmark Hang Seng Index added 118.20 points to finish at 23,336.52 on turnover of HK$57.73 billion.
But Shanghai ended down 0.19 percent. The benchmark Shanghai Composite Index slipped 4.36 points to 2,233.41 on turnover of 138.5 billion yuan ($22.7 billion).
Tokyo was up 0.26 percent, or 36.80 points, to 14,441.54, Sydney closed 0.98 percent, or 51.2 points, higher at 5,259.1 and Seoul ended 1.02 percent higher, adding 20.69 points to 2,040.96. In the afternoon Hong Kong was up 0.55 percent.
However, Shanghai eased 0.19 percent, slipping 4.36 points to 2,233.41, AFP reports.
Jakarta, Kuala Lumpur, Manila and Singapore were closed for public holidays.
After weeks of bickering between the two sides Senate Majority leader Harry Reid and his Republican opposite number Mitch McConnell had low-key talks that were positive.
Equities have remained buoyant despite the gridlock.
“It's not like the US can't afford to pay its bills, it's more like its wife has just hidden its checkbook,'' said CLSA equity strategist Nicholas Smith.
“Most fund managers appear to be more frightened of being left behind if the market [surges] than of the apocalyptic scenario of failing to fix the debt ceiling on time.''
Wall Street ended higher as investors cheered the progress Monday. The Dow climbed 0.42 percent, the S&P 500 was up 0.41 percent and the Nasdaq added 0.62 percent.
Despite hopes for a breakthrough soon the US dollar slipped as investors look past the debt crisis and to the Federal Reserve's next move on its stimulus.
The greenback bought 98.40 yen in afternoon trade, against 98.67 yen in New York Monday, while the euro fetched US$1.3567 and 133.51 yen compared with US$1.3559 and 133.79 yen.
On oil markets New York's main contract, West Texas Intermediate for delivery in November, fell 27 cents to US$102.14 a barrel, while Brent North Sea crude for November shed 27 cents to US$110.77 a barrel.
Gold cost US$1,272.21 compared with US$1,281.60.