Asian shares trade higher while on track for biggest monthly gain.

Asian shares have traded higher overnight with the region on track for its biggest monthly gain since January 2012. Led by Japanese equities, the Topix Index reversed losses amid speculation the nation’s government will study a corporate tax cut and advise public pension funds to hold more risky assets. Japan’s Topix has climbed 9.5 percent this month, extending this year’s surge to 41 percent. The gains have come amid optimism Prime Minister Shinzo Abe and the Bank of Japan can lead the country out of deflation through unprecedented monetary easing. Keeping a lid on further gains is the uncertainty in the U.S. market with a political showdown over government spending on the horizon.

Republican leaders in the House notified members that a vote on raising the debt limit could come as early as Friday. Obama has warned Congress that the treasury was quickly running out of funds to pay government bills and could soon face a damaging debt default. Treasury Secretary Jack Lew pleaded with Congress to raise the $16.7 trillion debt limit and said the government would not be able to borrow funds past October 17.

The U.S government will be aware of the potential for federal agency shutdowns in the near future unless Congress comes up with emergency funds. Possibly beginning next Tuesday – the new fiscal year - the Republican-led House of Representatives is set for tough fights over the next few days. Both the debt ceiling and government funding measures have been complicated by Republican attempts to use the must-do bills to gut President Barack Obama's signature healthcare law, known as "Obamacare." At a private meeting with House Democrats on Wednesday night, Senate Majority Leader Harry Reid reassured lawmakers they would not allow Republicans to include provisions to delay or defund Obamacare in the spending bill.

Risers:

TUI Travel, up 1.8%

The world’s largest tour operator has increased its profit outlook which it sent only seven weeks ago. This rise has been due to a surge in demand in Britain  and the Nordics for summer holidays. The group who own Thomson and First Choice brands said they now expect full-year underlying growth in operating profit of at least 11 percent after predicting growth of 10 percent in August.

Tullow Oil, up 1.4%

Oil and gas explorer Tullow Oil PLC has made an oil discovery in wildcat drilling in northern Kenya but will conduct further tests to confirm its productivity, it said Today. The discovery, at the Ekales-1 well, is Tullow's fourth wildcat discovery since drilling began in 2012 at northern Kenya's first oil basin. Tullow's Exploration Director Angus McCoss said: "This success at the Ekales-1 wildcat is further evidence of the exceptional oil potential of our East African Rift Basin acreage. Having opened the first basin with the Ngamia-1 well last year, we are now increasing the pace of exploration in Kenya aiming for 12 wells over the next 12 months."

Compass Group, up 1.9%

The food and support services company have said expectations for its full-year performance remain positive and unchanged. It forecast organic revenue growth for the full year ending Sept. 30 at constant currency of just over 4%, driven by new business wins, good retention rates and modest inflationary price increases, and it expects its full-year operating profit margin to be over 7% for the first time.

African Minerals, up 30%

African Minerals Ltd said Thursday it has entered into a strategic, binding Memorandum of Understanding with Tianjin Materials and Equipment Group Corporation or Tewoo, whereby Tewoo will pay $990 million for a 16.5% economic interest in the Tonkolili project.

Water Intelligence, up 20%

The provider of water monitoring products, Water Intelligence has posted a 35% rise in first half pre-tax profit, and said that it will continue to focus on increasing profitability. They also announced the appointment, with immediate effect, of WH Ireland Limited as the Company's nominated adviser and broker.

Fallers:

Centrica, down 2%

JPMorgan Cazenove downgrades Centrica to neutral from overweight and lowers its target price to 375p from 390p. Says the move follows the U.K. opposition Labour Party's proposals to freeze energy bills and also breakup the 'Big Six' suppliers. "Although there remains uncertainty surrounding the detail of the policies or whether Labour will even win the next election, we believe the risk level in the sector has now substantially increased," it says. Adds circa 85% of the companies' retail cost bases are outside of their control, therefore imposing a retail price freeze potentially opens the companies up to significant unmanageable risks. Centrica closed Wednesday at 376p.

Ladbrokes, down 8%

The betting company Ladbrokes has warned that profit will fall short of expectations because of a disappointing performance in its online business. Profits for its online arm will be in the range of £10-14m this year, short of the £27.5m which has been expected. Ladbrokes has already issued one profits warning this year.

Thomas Cook, down 7%

The UK package holiday company Thomas Cook Group PLC said Thursday summer trading continues to be in line with expectations and was over 95% sold, although in recent weeks bookings have lagged behind last year's strong late-booking market. However, the company said it is confident of achieving its targets and successfully implementing its growth strategy. Winter trading is at an early stage in the booking cycle, Thomas Cook said, adding that given geopolitical events in the Middle East and warm weather across Europe has meant the season has started more slowly than last year across most markets. Latest news from TCG contradicts what TUI travel have reported today.

Altitude Group, down 28%

Altitude Group PLC, a provider of information and technology services, Thursday posted a swing into loss during the half year-end, adding that full year results is expected to be below expectations due to slower than expected recurring revenue generation.

Zamano, down 18%

Mobile commerce company Zamano PLC, Thursday posted a 4% rise in pre-tax profit during the half year-end, adding that it anticipates a satisfactory trading outturn for the Group in the year ending Dec. 31.