HONG KONG: Asian markets mostly fell in edgy trading yesterday, after Wall Street ended broadly lower as a row looms about the US budget and debt ceiling.
With the deadline for a new budget agreement next Monday, investors are anxious that lawmakers on Capitol Hill reach an agreement that will avoid a shutdown of parts of the US economy.
However, with Republicans calling for cuts to President Barack Obama's healthcare law in the budget before they agree to any lifting of the country's borrowing limit, investors are preparing for a painful standoff.
Tokyo slipped 0.76 per cent, or 112.08 points, to 14,620.53 and Seoul lost 0.45 per cent, or 9.04 points, to 1,998.06. Shanghai closed down 0.41 per cent, or 9.02 points, at 2,198.52.
rose 0.80 per cent, or 41.7 points, to 5,275.9.
Global markets have been choppy since last Thursday's rallies following the US Federal Reserve's surprise decision to keep its massive stimulus programme in place for now.
Officials have warned that if a budget is not passed by the end of Monday some parts of the US government will have to be shut down, with hundreds of thousands of federal workers ordered to stay home with no pay.
In other markets: * Taipei
slipped 0.18 per cent to 8,283.90. Smartphone maker HTC fell 3.6 per cent to T$135.0 while Taiwan Semiconductor Manufacturing Co was 1.91 per cent lower at T$103.0.* Manila
dropped 0.63 per cent to end at 6,420.42. Metropolitan Bank eased 0.66 per cent to 89.65 pesos and Alliance Global lost 0.58 per cent to 25.80 pesos, while LT Group plunged 6.06 per cent to 17.04 pesos. * Mumbai
fell 0.32 per cent to 19,856.24 points. India's financial firm Financial Technologies fell 10.25 per cent to 150.25 rupees while Reliance Industries fell 2.93 per cent to 848.70 rupees.* Bangkok
rose 1.35 per cent to 1,436.90. Coal producer Banpu gained 2.39 per cent to 300 baht, while Thai Airways International added 3.70 per cent to 19.60 baht. * Jakarta
ended down 1.20 per cent at 4,406.77. Bank Negara Indonesia dropped 2.25 per cent to 4,350 rupiah, while Indofood Sukses Makmur gained 0.75 percent to 6,750 rupiah. AFP