Debt ceiling deal brings potential relief rally for US stocks.

Optimism and relief are likely to lift Asian markets on Monday as lawmakers in Washington reached a tentative agreement on the US debt ceiling, removing the risk of a catastrophic default. However, trading and market liquidity in Asia will be lighter than usual with US and UK markets closed for holidays, opening up the potential for outsized market moves. A debt limit deal gives the Federal Reserve more room to tighten policy, which could push up US bond yields and strengthen the dollar - not usually a good mix for emerging markets. The Asian economic data and events calendar is light on Monday but fills up later in the week.