HONG KONG: Asian stocks fell yesterday on growing nervousness at the lack of movement to end the US government shutdown, as a deadline approaches for lawmakers to raise the borrowing limit.
The dollar slipped further against the yen and euro as the budget stand-off on Capitol Hill approaches the seventh day with no end in sight.
Tokyo lost 1.22 per cent to end at 13,853.32, Sydney fell 0.90 per cent to 5,161.1 and Seoul shed 0.13 per cent to 1,994.42.
Shanghai was closed for a public holiday.
"Markets are unimpressed with the lack of progress in breaking the US deadlock," said Kenichi Hirano, market adviser at Tachibana Securities.
US Treasury Secretary Jack Lew warned on Sunday that Congress was "playing with fire" as Republican House leader John Boehner said the party would not raise the US debt ceiling without spending cuts.
A similar stand-off in 2011 went down to the wire before the debt ceiling was raised, but not before world stock markets tumbled and Standard & Poor's downgraded Washington's AAA sovereign rating.
"Both sides have become more entrenched in their positions, implying that any agreement on raising the debt ceiling required by October 17 also looks out of reach," French bank Credit Agricole said in a note to investors.
In other markets:* Taipei
lost 0.37 per cent to end at 8,333.66. * Wellington
was flat, edging down 3.34 points to 4,756.04. Air New Zealand lost 0.33 per cent to NZ$1.50, Fletcher Building shed 0.95 per cent to NZ$9.37 and Telecom fell 0.22 per cent to NZ$2.30. * Manila
rose 0.83 per cent to 6,443.21. Food manufacturer Universal Robina Corp added 1.37 points to 118.60 pesos and SM Investments Corp gained 3.65 per cent to 837 pesos.* Mumbai
was flat, edging down 0.10 per cent to 19,895.10 points. Jet Airways fell 3.41 per cent to 371.40 rupees while Apollo Tyres rose 4.96 per cent to 69.8 rupees. * Bangkok
fell 0.92 per cent to 1,414.62. Supermarket operator Big C Supercenter lost 3.81 per cent to 202.00 baht, while Airports of Thailand dropped 2.03 per cent to 193.00 baht.* Jakarta
closed down 0.33 per cent at 4374.96. Tobacco company Gudang Garam lost 0.85 per cent to 35,050 rupiah, while Bank Negara Indonesia gained 2.35 per cent to 4,350 rupiah. AFP