Markets in Asia and Europe surged on Monday after President Barack Obama and congressional leaders announced a last-minute de...

Markets in Asia and Europe surged on Monday after President Barack Obama and congressional leaders announced a last-minute deal to raise the debt ceiling, and futures for the U.S. markets suggest that they will also open up.

After opening down before Obama announced the agreement and following a week of declines, Asian markets climbed as confidence that the U.S. government will not default on its debts emerged, even as a potential downgrade of U.S. bond ratings still looms.

Hong Kong’s Hang Seng closed up one percent – 223 points – on Monday, while Japan’s Nikkei gained more 130 points, 1.3 percent. South Korea’s Seoul Composite closed up 1.8 percent and China’s Shanghai Composite was up 0.08 percent on the day.

In Europe, England’s FTSE 100 was up more than 70 points, 1.2 percent, as of 5 a.m. ET, while markets in Germany, France and Belgium were all up between 0.7 and 1 percent. Sweden’s Stockholm General was up 1.5 percent.

“It is a relief rally on the back of the parties coming together, but it could only last for a couple of days as the United States could now face a ratings downgrade,” Manoj Ladwa, senior trader at ETX Capital, told Reuters.

“That would impact every part of the United States.”

As of 5:15 a.m. ET, Dow Jones Industrial Average futures were up 141 points – just over 1 percent – while futures for the Nasdaq and S&P 500 were also up about 1 percent.