Asia-Pacific markets were mostly higher on Thursday after the bill to raise the U.S. debt ceiling was passed in the House of Representatives, advancing it to the Senate just days ahead of the default deadline.
The House passed the bill with support from both Democrats and Republicans, a dramatic conclusion to weeks of tense negotiations between the White House and Republican House Speaker Kevin McCarthy. Â
In Japan, the Nikkei 225 saw a 0.84% gain to close at 31,148.01 after it retreated from the 31,000 mark on Wednesday, with the Topix also up by 0.88% and ending at 2,149.29.
Australia's S&P/ASX 200 gained 0.27% to finish at 7,110.8, rebounding off a one month low.
South Korean markets were more mixed. The Kospi was down 0.31% and ended at 2,569.17, being the only major Asian benchmark index to be in the red on Thursday. Meanwhile, the Kosdaq was up 0.8% and closed at 863.78, closing at its highest level in about six weeks.
Hong Kong's Hang Seng index rebounded after touching bear market territory, with the HSI rising fractionally.
Mainland Chinese markets were also higher, with the Shanghai Composite closing marginally up at 3,204.63.
The Shenzhen Component rose 0.39% to end at 10,835.9, a slight rebound from its lowest level since November 2022.
Overnight in the U.S., all three major indexes slipped as investors kept an eye on the federal debt ceiling debate in Washington in the final trading day of May, with the Dow Jones Industrial Average down 0.41% and the S&P 500 falling 0.61%. The Nasdaq Composite saw the largest loss, shedding 0.63%.
— CNBC's Jesse Pound and Alex Harring contributed to this report