YOSEMITE NATIONAL PARK, CA - File (Photo by David McNew/Getty Images)
Hide Caption

Shutdown, debt deal: National parks: Yosemite National Park reopens immediately after shutdown vote

a a a a
Share this story

BEIJING (AP) -- The International Monetary Fund appealed Thursday to Washington for more stable management of the nation's finances as Asian stock markets rose after U.S. leaders agreed to avoid a default and end a 16-day government shutdown.

With only hours to spare until the $16.7 trillion debt limit was reached, Congress passed and sent a waiting President Barack Obama legislation late Wednesday night to allow more borrowing and reopen government agencies.

"World heaves sigh of relief as U.S. barely averts debt default," said the Times of India newspaper in a headline.

IMF managing director Christine Lagarde welcomed the deal but said the shaky American economy needs more stable long-term finances. The deal only permits the Treasury to borrow normally through Feb. 7 and fund the government through Jan. 15.

"It will be essential to reduce uncertainty surrounding the conduct of fiscal policy by raising the debt limit in a more durable manner," Lagarde said in a statement.

The Tokyo stock market, the region's heavyweight, gained as much as 1.1 percent. Markets in China, Hong Kong and South Korea also rebounded from losses.

China and Japan, which each own more than $1 trillion of Treasury securities, appealed earlier to Washington for a quick settlement. There was no indication whether either government had altered its debt holdings.

China's official Xinhua News Agency had accused Washington of jeopardizing other countries' dollar-denominated assets. It called for "building a de-Americanized world," though analysts say global financial markets have few alternatives to the dollar and U.S. government debt for trading and holding currency reserves.

Asian companies and investors had expressed confidence the United States would avoid a default. But had sold Treasurys to avoid possible losses if Washington delayed repayment. Others put off buying stocks that might be exposed to a U.S. downturn.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Print this article

Comments

Hmm... It looks like you’re not a WCPO Insider. or Subscribe now to contribute!

Government Shutdown
Shutdown affected us in ways we did not see
Shutdown affected us in ways we did not see

Our food was a little less safe, our workplaces a little more dangerous. The risk of getting sick was a bit higher, our kids' homework…

Worker dragged off House floor in screaming fit
Worker dragged off House floor in screaming fit

A woman described by lawmakers and aides as a long-time House stenographer has been removed from the chamber during a vote after she began shouting.

How much did the shutdown really cost us?
How much did the shutdown really cost us?

It took 16 days, but late Wednesday, a battle-weary Congress approved a measure to end the government shutdown. But how much did it really…

Federal workers go back to work after shutdown
Federal workers go back to work after shutdown

Hundreds of thousands of furloughed federal workers are returning to work across the country after 16 days off the job.

Beshear laments effects of government shutdown
Beshear laments effects of government shutdown

Gov. Steve Beshear is pressing Kentucky's federal delegation to resolve the government shutdown, saying it's having negative effects…

Yosemite reopens immediately after shutdown vote
Yosemite reopens immediately after shutdown vote

Yosemite National Park is reopening to visitors Wednesday night with the end of the 16-day partial government shutdown.

World heaves sigh of relief as US avoids default
World heaves sigh of relief as US avoids default

The International Monetary Fund appealed to Washington for more stable management of the nation's finances as Asian stock markets rose…

Gov't reopens after Congress ends shutdown
Gov't reopens after Congress ends shutdown

The government reopened its doors Thursday after a battle-weary Congress approved a bipartisan measure to end a 16-day partial shutdown and…

Obama signs bill to avert default, open gov't
Obama signs bill to avert default, open gov't

President Barack Obama has signed a measure into law reopening the federal government and averting a potential default.  

Furloughed? Send creditors a note from gov't
Furloughed? Send creditors a note from gov't

Furloughed federal workers who have trouble paying bills can send their creditors a letter from the government pleading for patience.