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Asian shares decline over US budget stalemate
by Himanshu Singh on Sep 30, 2013 at 04:25
Asian shares declined on Monday amid concern the US government is headed for a shutdown amid a budget stalemate.
The MSCI Asia Pacific Index dropped 1% to 139 as of 10:02 a.m. in Tokyo. Japan’s Topix index slumped 1.9%. Nikkei Stock Average 225 fell 2.13%. South Korea’s Kospi index lost 0.8% and Australia’s S&P/ASX 200 Index fell 1%. New Zealand’s NZX 50 Index dropped 0.8%.
Hang Seng Index in Hong Kong was down 1.26%, while China’s Shanghai Composite Index gained 0.42%.
Markets are pressured by the budget stalemate in the US. Even if Congress resolves the budget fight by the 1 October deadline, US lawmakers would immediately move to the next fiscal dispute over raising the $16.7 trillion debt ceiling.
In corporate news, Toyota Motor Corp., which gets 31% of its revenue in North America, fell 2.2%.
BHP Billiton Ltd., Australia’s biggest oil producer, declined 1.1% as crude fell. Mizuho Financial Group Inc., Japan’s third-largest bank, lost 4.1% after its lending unit was penalised by Japan’s banking regulator for failing to end transactions with “anti-social” groups.
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