Asian stocks looked poised for gains following the stronger lead from Wall Street after U.S. lawmakers reached a deal to end a government shutdown and as earnings reports stateside remained solid.

U.S. stocks closed higher on Monday, paring early losses after the Senate reached a short-term compromise to end a government shutdown that began last week. The stopgap bill approved by the Senate on Monday will keep the U.S. government open through Feb. 8.

The House of Representatives subsequently voted and passed the bill to reopen the government, sending it to President Donald Trump for a signature.

The Dow Jones industrial average advanced 0.55 percent, or 142.88 points, to close at 26,124.60. The SP 500 and Nasdaq composite both touched record highs before closing nearly 1 percent higher on the day.

“[N]ews of a deal to re-open the government has predictably been offered as an excuse for yet new record highs being chalked up,” but a better reason for the gains was likely the “ongoing lifting of earnings expectations by stock market analysts, driven in large by assessment of the tax deal and … ongoing slippage in the dollar,” Ray Attrill, head of foreign exchange strategy at National Australia Bank, wrote in a morning note.

In Asia, futures pointed to a higher open for equities in Japan. Nikkei futures traded in Chicago were up 0.62 percent at 23,965 and Osaka futures were 0.39 percent higher at 23,910 compared to the benchmark’s last close. The Nikkei 225 had closed barely in positive territory in the previous session.

Over in Sydney, the SP/ASX 200 edged up 0.09 percent in early trade.

In currencies, the dollar index, which tracks the U.S. currency against six peers, traded at 90.363 at 6:57 a.m. HK/SIN. Against the yen, the dollar firmed to trade at 110.95.

The Australian dollar held above the $0.80 mark to trade at $0.8012 as the greenback remained on the back foot.

News Reporter

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