Stocks limp toward U.S. debt denouement; Japan sparkles

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Stocks were subdued on Friday, apart from standout gains in Japan, as an artificial intelligence rally took a breather and as time ticked out on high-stakes talks to avoid a U.S. debt default.

The Nikkei is up 0.7% on the week, too, for a seventh weekly gain in row - its longest weekly winning streak in five years and one which has added some $460 billion to Japanese stocks.

"These forces have brought about a tectonic shift in the price-setting behaviour of Japanese companies, and thus an improvement in their profit margins." The U.S. Treasury estimates it'll run out of funds within a week and legislating any deal will take that down to the wire.

 

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