BANGKOK (AP) - Asian stocks rose Thursday, a day after the U.S. reached a deal to stave off the so-called fiscal cliff, but enthusiasm waned by the time European markets opened.
A last-minute deal agreed to by U.S. lawmakers late Tuesday prevented steep tax increases and spending cuts from automatically taking effect. Economists were warning that the cuts could eventually trigger a recession in the world's largest economy.
Wall Street stocks soared Wednesday amid investor relief that Republicans and Democrats had hammered out a last-minute deal. However, the compromise left many issues unresolved.
The deal doesn't include any significant deficit-cutting agreement, meaning the country still doesn't have a long-term plan on how to curb spending. Big cuts to defense and domestic programs weren't worked out but instead were delayed for two months.
Filipino traders hear a mass before the start of the first day of trading at Philippine Stock Exchange at the financial district of Makati, south of Manila, Philippines on Wednesday Jan. 2, 2013. Stock markets in Asia registered relief Wednesday over the U.S. congressional vote to stop hundreds of billions of dollars in automatic tax increases and spending cuts that risked plunging the world's biggest economy into recession. (AP Photo/Aaron Favila)