(Bloomberg) -- Asian equities rose after US stocks rallied on optimism over debt-ceiling talks, allowing investors to refocus on the path for interest rates and the health of the banking system.

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A gauge of Asian stocks headed for its biggest gain in two weeks with the Topix index rising more than 1%, putting it on track for a fresh 33-year closing high. Benchmarks in Australia, Hong Kong and South Korea also advanced.

Nomura Holdings Inc. gained even after the company said it would cut its profit forecast, but Tencent Holdings Ltd. dropped in Hong Kong after the release of its first-quarter results.

US futures were marginally lower in Asia after the S&P 500 and Nasdaq 100 closed near highs of the day, rallying more than 1%.

President Joe Biden expressed confidence there will be no US default, and House Speaker Kevin McCarthy said reaching an agreement this week is “doable.” JPMorgan Chase & Co. chief Jamie Dimon said the US government “probably” will not default on its debts after he and other bank leaders met in Washington to discuss the debt limit.

The dollar and Treasuries were little changed in Asia. That was after yield on the US two-year note rose seven basis points on Wednesday, while the 10-year yield climbed three basis points to 3.56%. The yen stayed in a narrow range after Japanese export data for April fell short of estimates.

Aussie Jobs

Australia’s dollar dropped after the country reported an increase in unemployment, which reinforced the case for the central bank to stand pat at next month’s policy meeting.

Meanwhile, the Philippine central bank is forecast to hold interest rates at 6.25%. New Zealand’s finance minister will deliver the country’s budget, with economists expecting a return to surplus in 2026, a year later than predicted in the December fiscal update.

US regional banks rallied after Western Alliance Bancorp reported growth in deposits boosted sentiment and eased worries about the health of the industry. All members of the KBW Regional Banking index advanced, pushing the benchmark 7.3% higher for its best day since January 2021.

In late trading, Cisco Systems Inc. dropped after the networking company reported its third-quarter results and gave an outlook.

Alibaba Group Holding Ltd. results are due later Thursday and Walmart Inc. will report in the US.

European Central Bank Vice President Luis de Guindos said the ECB has completed most of its tightening but there is still “a way to go.”

Key events this week:

• US initial jobless claims, Conference Board leading index, existing home sales, Thursday

• Japan CPI, Friday

• ECB President Christine Lagarde participates in panel at Brazil central bank conference, Friday

• New York Fed’s John Williams speaks at monetary policy research conference in Washington; Fed Chair Jerome Powell and former chair Ben Bernanke to take part in panel discussion, Friday

Some of the main moves in markets:

Stocks

• S&P 500 futures fell 0.1% as of 10:55 a.m. Tokyo time. The S&P 500 rose 1.2%

• Nasdaq 100 futures were little changed. The Nasdaq 100 rose 1.2%

• Japan’s Topix rose 0.8%

• Hong Kong’s Hang Seng Index rose 0.8%

• China’s Shanghai Composite Index rose 0.4%

• Australia’s S&P/ASX 200 rose 0.6%

Currencies

• The Bloomberg Dollar Spot Index was unchanged

• The euro was little changed at $1.0843

• The Japanese yen rose 0.2% to 137.38 per dollar

• The offshore yuan fell 0.1% to 7.0163 per dollar

• The Australian dollar fell 0.3% to $0.6641

Cryptocurrencies

• Bitcoin was little changed at $27,322.58

• Ether fell 0.4% to $1,819.92

Bonds

• The yield on 10-year Treasuries declined one basis point to 3.55%

• Japan’s 10-year yield advanced one basis point to 0.37%

• Australia’s 10-year yield advanced one basis point to 3.44%

Commodities

• West Texas Intermediate crude fell 0.3% to $72.61 a barrel

• Spot gold rose 0.1% to $1,984.79 an ounce

This story was produced with the assistance of Bloomberg Automation.

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