WASHINGTON - Asian markets mostly rose on Thursday after the US House passed a bill to avoid a painful default, as traders turn their attention to the Federal Reserve's next policy meeting and China's struggling economy.
After weeks of brinkmanship, Democrats and Republicans came together to push through an agreement to lift the debt ceiling in rare bipartisan cooperation.
Hardline Republicans had warned they would shoot the deal down, saying it did not have enough spending cuts, and some Democrats were also angry at the reductions made.
The bill now goes to the Senate before President Joe Biden can sign it off, allowing the government to borrow more cash to service its mammoth debts.
Failure to do so before the cash run out -- said to be June 5 -- would have resulted in a default that many warned would hammer the global economy and markets.
House Speaker Kevin McCarthy, who drew up the deal with Biden after weeks of wrangling, said: "Passing the Fiscal Responsibility Act is a crucial first step for putting America back on track.
"It does what is responsible for our children, what is possible in divided government, and what is required by our principles and promises."
- China worries linger -
Asian investors welcomed the passage in early trade. Hong Kong, Tokyo, Shanghai, Sydney, Singapore, Wellington and Manila all rose, though Seoul and Taipei struggled.
But while the threat of a default by Washington has receded for now, traders continue to fret.
Focus will now turn to the release of US jobs data on Friday, which will be pored over for an idea about the state of the world's top economy.
Continued strength in the labour market has been a key factor in the Fed's decision to keep hiking rates for more than a year as it tries to rein in inflation.
Data showing an unexpected jump in job openings on Wednesday did little to soothe investor concerns the central bank could lift again later this month.
The figures come after the Fed's preferred gauge of inflation picked up pace in April.