Investing.com - Asian stock markets were lower on Monday, as appetite for riskier assets weakened amid ongoing uncertainty over the U.S. government shutdown and the upcoming debt ceiling debate.
During late Asian trade, Hong Kong's Hang Seng Index fell 0.8%, Australia’s ASX/200 Index ended 0.9% lower, while Japan’s Nikkei 225 Index closed down 1.22%.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the U.S. debt ceiling unless Democrats agree to talks about spending cuts.
The comments fuelled fears that the political deadlock in Washington will not be resolved by October 17, the date which the Treasury Department has estimated the U.S. could risk an unprecedented default.
Moody's Investors Service warned that a failure to raise the debt limit would result in a worse outcome for financial markets than a government shutdown.
In Tokyo, the Nikkei ended at the lowest level since September 6 as the yen strengthened against the U.S. dollar, weighing on sentiment.
USD/JPY fell to hit a session low of 97.01, moving off the previous session’s high of 97.47. A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Automakers Toyota and Mazda saw shares decline 1.45% and 2.9% respectively, while Sony and Sharp fell 1.8% and 8.2%.
Japanese megabanks were also lower with shares of the nation’s largest lender Mitsubishi UFJ Financial Group slumping 1%, while Sumitomo Mitsui Financial Group and Nomura Holdings shed 1.2% and 3% respectively.
Meanwhile, in Australia, the ASX/200 Index fell to a one-month low as lenders came under pressure.
The big four banks were all lower, with National Australia Bank losing 1.2%, while ANZ Banking Group and Westpac Banking Group retreated 1% and 0.6%. Commonwealth Banking Group declined 1.4%.
Elsewhere, in Hong Kong, the Hang Seng ended at the lowest level since September 30.
The China banking sector contributed to losses, with China Construction Bank falling 1%, Industrial and Commercial Bank of China shedding 0.9% and China Minsheng Bank down 1.2%.
Looking ahead, European stock market futures pointed to a lower open.
The EURO STOXX 50 futures pointed to a loss of 0.6% at the open, France’s CAC 40 futures shed 0.5%, London’s FTSE 100 futures indicated a drop of 0.65%, while Germany's DAX futures pointed to a drop of 0.55% at the open.
The euro zone was to release revised data on second quarter growth later Monday.
During late Asian trade, Hong Kong's Hang Seng Index fell 0.8%, Australia’s ASX/200 Index ended 0.9% lower, while Japan’s Nikkei 225 Index closed down 1.22%.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the U.S. debt ceiling unless Democrats agree to talks about spending cuts.
The comments fuelled fears that the political deadlock in Washington will not be resolved by October 17, the date which the Treasury Department has estimated the U.S. could risk an unprecedented default.
Moody's Investors Service warned that a failure to raise the debt limit would result in a worse outcome for financial markets than a government shutdown.
In Tokyo, the Nikkei ended at the lowest level since September 6 as the yen strengthened against the U.S. dollar, weighing on sentiment.
USD/JPY fell to hit a session low of 97.01, moving off the previous session’s high of 97.47. A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Automakers Toyota and Mazda saw shares decline 1.45% and 2.9% respectively, while Sony and Sharp fell 1.8% and 8.2%.
Japanese megabanks were also lower with shares of the nation’s largest lender Mitsubishi UFJ Financial Group slumping 1%, while Sumitomo Mitsui Financial Group and Nomura Holdings shed 1.2% and 3% respectively.
Meanwhile, in Australia, the ASX/200 Index fell to a one-month low as lenders came under pressure.
The big four banks were all lower, with National Australia Bank losing 1.2%, while ANZ Banking Group and Westpac Banking Group retreated 1% and 0.6%. Commonwealth Banking Group declined 1.4%.
Elsewhere, in Hong Kong, the Hang Seng ended at the lowest level since September 30.
The China banking sector contributed to losses, with China Construction Bank falling 1%, Industrial and Commercial Bank of China shedding 0.9% and China Minsheng Bank down 1.2%.
Looking ahead, European stock market futures pointed to a lower open.
The EURO STOXX 50 futures pointed to a loss of 0.6% at the open, France’s CAC 40 futures shed 0.5%, London’s FTSE 100 futures indicated a drop of 0.65%, while Germany's DAX futures pointed to a drop of 0.55% at the open.
The euro zone was to release revised data on second quarter growth later Monday.