Asian stock markets surged Monday on news that U.S. President Barack Obama and congressional leaders had reached a deal to avert a debt default.

Tokyo's Nikkei Index closed up 1.34 percent, snapping a three-day losing streak, while the dollar climbed nine-tenths of a percent against the yen.

Hong Kong markets maintained a 1.4 percent jump through morning trading, while markets across Asia trended upward. U.S. stocks are expected to rise significantly Monday, after a week of losses.

Gold dropped $13.53 to $1,613.54 an ounce.

Despite the proposed deal, analysts still say rating agencies will likely downgrade U.S. bonds because of the uncertainly of future spending cuts and the general anxiety among investors caused by the debt crisis.

The agreement still must be passed by a deeply divided Congress.