HONG KONG: Asian markets slipped yesterday, with traders growing nervous that talks to raise the US borrowing limit remain deadlocked just days before the deadline to avoid a default.
Republicans and Democrats were unable to find a compromise after a rare Sunday session to hammer out a budget deal to reopen the government, which has been partially shut down for two weeks.
Adding to selling pressure was a disappointing batch of Chinese trade figures at the weekend that indicated a recent pick-up in the world's number two economy may not be as strong as hoped.
Sydney fell 0.44 per cent, or 23.0 points, to 5,207.9, Seoul eased 0.23 per cent, or 4.63 points, to 2,020.27.
However, Shanghai added 0.43 per cent, or 9.62 points, to 2,237.77 despite the weak data at the weekend, with investors buying consumer-related shares owing to a bigger jump in inflation than expected.
Tokyo, Hong Kong and Jakarta were closed for public holidays.
With the United States expected to run out of cash to pay its bills on Thursday, focus is on Washington, where President Barack Obama has urged Republicans to agree to a debt ceiling hike.
Failure to raise the spending limit would mean a default that could have a devastating effect around the world.
China and Japan - who between them hold more than US$2.4 trillion of US debt - have urged the US to get its house in order and avert a default.
In other markets:
* Bangkok edged up 0.14 per cent, or 2.06 points, to 1,459.84. Coal producer Banpu slipped 0.86 per cent to 28.75 baht while Bangkok Bank gained 0.49 per cent to 205.00 baht.
* Manila eased 0.73 per cent, or 47.10 points, to 6,442.70. Philippine Long Distance Telephone Co fell 1.03 per cent to 2,870 pesos, while SM Prime Holdings dropped 1.80 per cent to 16.38 pesos.
* Mumbai rose 0.38 per cent, or 78.95 points, to 20,607.54. Karnataka Bank rose 16.97 per cent to 108.97 rupees, while Tata Consultancy Services rose 4.27 per cent to 2,214.65 rupees.
* Taipei fell 0.90 per cent, or 75.41 points, to 8,273.96. Taiwan Semiconductor Manufacturing Co was 1.41 per cent lower at T$105.0 while Hon Hai Precision shed 1.86 per cent to T$74.0. AFP