Passage of US debt cap law by MPs revives Japan’s shares

Japan’s Nikkei index closed higher on Thursday, amid investor demand for shares after losses recorded in the previous session, and amid optimism after the U.S. House of Representatives ratified a debt cap bill that would avoid the country’s default.

The U.S. House of Representatives voted to pass a bill reached by the Republican and Democratic parties to suspend the $31.4 trillion debt cap.

The Nikkei index ended with a four-day winning streak, its biggest decline since April 5 amid earnings.

The Nikkei index rose 0.84% to close at 3,1148.01 points, after trading began lower, and the index’s gains accelerated after news that the U.S. House of Representatives had passed a debt cap bill.

SoftBank jumped 4.57% to become the top gainer on the Nikkei index.

Toyota Motor Corp rose 1.81%, after the automaker said it would invest an additional $2.1 billion in its new battery plant in N.C., United States, in an effort to capitalize on growing demand for electric vehicles.