By Alun John

HONG KONG (Reuters – Asian shares surged Thursday after a Wall Street recovery. U.S. politicans were close to a temporary arrangement to avert a Federal Debt default. Russia was also reassuring Europe regarding gas supplies. This helped to calm volatile markets.

The oil prices fell from their multi-year peak a day earlier. This was a significant contributor to the week’s selloff in equities. However, U.S. benchmark Treasury yields, and other major currencies, remained steady amid a calmer environment.

MSCI’s Asia-Pacific broadest index, which excludes Japan, rose 1.25% during early trade. This is a regaining of ground it lost in recent days and little change on the week.

Capital Economics analysts wrote that sharp (OTC) price increases have contributed to the recent leg up in bond yields. This was accompanied by weakness across equity markets worldwide,” they added in a note.

Oil prices fell on Thursday and shares in Australia saw gains of 1.3%, 0.644%, Hong Kong saw an increase of 2%, and Australia saw its share benchmarks rise by 0.64%.

Stock futures in the United States, The, rose 0.89% while they gained 0.42%

Chinese markets remain closed during the holiday.

The price of a barrel fell 0.34%, to $77.17 per barrel. This follows a 7-year peak of $79.78 that was reached earlier in the day. It was stable at $81.04 per bar, a steady level from its previous three-year peak of $83.47 on Wednesday. [O/R]

After an unexpected increase in crude stockpiles, the falls were triggered by a sudden rise in U.S. oil prices.

The gas prices fell also on the day that Russian officials indicated that Europe’s supply could rise. This contributed to Wall Street’s late rally after European stock market declines.

It rose by 0.3%

Along with rising oil prices, stocks have suffered from fears that the U.S. might default on its loans.

Payrolls data is due Friday. Global investors are anticipating that an acceptable figure will signal to the U.S. Federal Reserve that it will taper its enormous stimulus program during its November meeting.

The dollar held steady against other currencies and was not too far off the 12-month highs it reached last month. It also held its 14-month highest against the Euro.

Referring to Wednesday’s 1.573% high, the benchmark yield was 1.5415%.

Westpac’s analysts wrote that momentum and sentiment are variables, which can cause shifting risk appetite.

“Price movement is tied to equity market volatility, Fed optimism and fears of stagflation from oil surges. The politics surrounding the debt ceiling also threaten the domestic economy.”

It traded at $1,761.89 an ounce, little change from the previous day.