Facebook Connect Follow us on Twitter and win an iPad 3
Asian stock markets have risen

Asian stock markets have risen on hopes the US will reach a deal on raising its debt ceiling, tracking overnight gains on Wall Street. However, this was after US Republicans offered President Obama a short-term increase in the debt limit to stave off default.

According to BBC, there have been concerns that a failure to agree a deal to raise the limit may see the US default on its payments and hurt the global economy.

Therefore, analysts said the offer by the Republicans had raised hopes that such a scenario was likely to be avoided.

Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC, said that “What this is? It is opening the door to discussion and negotiation when before we had two sides just finger pointing”.

He added “We don’t know if in six weeks we’ll be in the same place, but at least this opens the possibility [of a deal]”.

The US needs to agree on raising the nation’s $16.69 trillion (£10.47tn) debt ceiling.

A failure to do so could see the US government default, as it runs out of money to pay its bills and service its national debt.

BBC reported that analysts have said such a scenario was likely to have a serious impact on global economic growth.

Moreover, the International Monetary Fund chief Christine Lagarde has also warned that failure by Washington to raise the federal debt ceiling would wreak serious damage on the US and global economies.