Asia Markets Rise After Biden Signs Debt Ceiling Bill; Oil rises due to OPEC+ cuts

Japanese service sector It witnessed a record rate of expansion In May, according to special surveys conducted by Bank au Jibun.

The country’s Services PMI came in at 55.9, surpassing the previous record of 55.4 set last month and extending its streak to six consecutive months of rapid expansion.

The bank wrote that “anecdotal evidence suggests that the increase in customer demand has continued as the effects of the Covid-19 pandemic continue to fade.”

It added that companies’ business outlook remained “wildly optimistic” with “particular focus on the strength of the tourism sector”.

– Lim Hwi Ji

Wall Street analysts have recently been bullish on the metal, with Citi and Goldman predicting that prices are poised to rally.

For those looking to buy in this sector, CNBC Pro examined stocks in the Global X Copper Miners ETF, and the resulting stocks include one with a gain of nearly 100%.

CNBC Pro subscribers can read more here.

– Wizen tan

Two AI companies are undervalued by the stock market, according to Frank Downing of Ark Investments.

Downing, director of research at the ARK Next Generation Internet ETF, believes that as the cost of artificial intelligence decreases, investors should look for companies with specialized use cases that can offer higher returns.

Downing points out that the stock he picked could be greatly enhanced by taking advantage of great language models like those made by OpenAI, the company behind ChatGPT.

CNBC Pro subscribers can read more here.

– Ganesh Rao

The US jobs report for May blew past expectations, buoyed by strong job gains in the professional and business services sector – as well as a jump in government hiring.

Professional and business services led job creation for the month with 64,000 new employees, following a similar increase in volume in April. The government added 56,000 jobs last month, higher than the average monthly gain of 42,000 over the previous 12 months.

Job gains were widespread last month with healthcare contributing 52,000 and leisure and hospitality services adding 48,000.

Major indices traded near session highs with just under 3 hours left in the trading day as investors maintained Friday’s advance.

The Dow Jones rose 640 points, near its high of 666 points.

Similarly, the S&P 500 and Nasdaq were both less than a tenth of a percentage point from their session highs. The S&P 500 was last up 1.42%, close to its session high of 1.5%. The Nasdaq Composite added 1.06%, retreating slightly from the session’s highest gain of 1.16%.

The US is not out of a financial bind with Fitch, with the ratings firm saying government debt remains on the cusp of a potential cut despite the debt ceiling deal.

“Achieving an agreement despite heated political partisanship while modestly reducing the fiscal deficit over the next two years is positive considerations,” Fitch said in a statement. “However, Fitch believes that frequent political standoffs over debt limits and last-minute suspensions ahead of schedule (when the Treasury’s cash position and extraordinary measures are exhausted) reduce confidence in governance on financial and debt matters.”

The company cited “continued deterioration in governance over the past 15 years” as reasons for its pessimistic outlook and said it would “resolve” the case for credit control in the third quarter of 2023.

On Thursday, Moody’s said it was not considering downgrading the United States.

– Jeff Cox