Asian stocks ended mostly higher on Thursday but pared gains after President Obama signed a last-minute Congressional deal to avert a debt default and to reopen the government after a more than two-week shutdown.
Japan's Nikkei and South Korea's Kospi moved off session highs while Australia's closed at a two-and-a-half week high. Emerging markets also benefited with Philippine's PSI leading gains by over 1 percent.
"The next thing markets need to (and to a degree are already doing) think about is how stressful negotiations will be in January and February, when we get to see both political parties revisiting negotiations to avoid a fresh government shutdown and curb the US treasuries ability to borrow in the capital markets (i.e. debt ceiling)," said Chris Weston, market strategist at IG in a note.
(Read more: US crisis over, will China re-think Treasury assets?)
An 11th-hour deal
The deal extends the government's borrowing authority until February 7 and funds government agencies until January 15, but the news saw Dow futures erase earlier gains to fall 20 points.
The Office of Management and Budget said previously furloughed federal workers should report to work Thursday morning and Congressional leaders began to appoint budget negotiators to find a longer term budget solution.
The U.S. House of Representatives voted to pass the bill shortly after 10 p.m EST following the Senate's approval two hours earlier.
(Read more: Debt deal done, are emerging markets about to soar?)
Nikkei 0.8% higher
The benchmark index pared gains after hitting a three-week high at 14,664 points earlier in the session as the yen moved off a three-week low of 99 per dollar.
Apple-related shares also rallied after the U.S. tech giant said it will be reducing orders from its Taiwanese suppliers. Ibiden climbed over 3 percent and Murata Manufacturing added 1 percent.
Thursday marked the seventh straight session of gains for the benchmark index.
Shanghai slips 0.2%
China's benchmark index reversed earlier gains to end lower for a third straight session as investors looked ahead to a raft of economic data on Friday for further trading cues. Caution also set in after the mainland's commerce ministry said that exports may face challenges due to slowing demand from emerging markets.
(Read more: China set to post its best growth so far this year)
"Economic growth is projected to slow further next year, to 7 percent and the short term investment mind-set of individual investors could see an exit of liquidity just as quickly," said Kelly Teoh, market strategist at IG in a note.
Profit-taking hit real-estate developers for a second session with Shanghai Shimao and China Merchants Property down 1 percent each.
Sydney adds 0.4%
Australia's benchmark index rose above 5,280 points to hit its highest level since September 30 while the stood firm at $0.95 against the greenback.
Newcrest Mining and Fortescue Metals eased 0.6 and 3 percent, respectively despite posting higher production figures for the September quarter while Woodside Petroleum fell 1.3 percent after reporting an annual 17 percent fall in production.
Ten Network shed 1.7 percent after posting a larger-than-expected full-year net loss.
Building materials maker Boral surged 6 percent after announcing a joint venture project with U.S. firm USG Corp.
Seoul up 0.3%
South Korea's benchmark index pared gains after hitting a six-month high above the 2,050 mark earlier in the session. But a 1 percent rise in index heavyweight Samsung Electronics lent support.
Sentiment eased slightly after central bank data showed producer prices eased for a twelfth straight month in September.
Emerging markets gain
But India's Bombay Sensex index resumed trade on a flat note after being shut for a public holiday on Wednesday.
— By CNBC.com's Nyshka Chandran. Follow her on Twitter @NyshkaCNBC