Investing.com - Asian stock markets were mixed in cautious trade on Wednesday, as the U.S. moved closer to a deadline to raise the national debt ceiling or risk default.
During late Asian trade, Hong Kong's Hang Seng Index fell 0.6%, Australia’s ASX/200 Index ended 0.07% higher, while Japan’s Nikkei 225 Index closed up 0.18%.
Investors continued to monitor negotiations over a U.S. budget impasse that has kept the federal government shut down since October 1. Markets were also growing increasingly concerned over negotiations to raise the U.S. debt ceiling.
Senate leaders were continuing negotiations aimed at ending the fiscal impasse, after a last minute deal put forward by House Republicans collapsed on Tuesday.
The U.S. risks a sovereign debt default if the government borrowing limit is not raised by October 17.
Ratings agency Fitch placed its AAA-rating on the U.S. on “rating watch negative” on Tuesday and said a downgrade is possible. The firm said the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
In Tokyo, the Nikkei inched higher in choppy trade as the yen held near a two-week low against the U.S. dollar, boosting sentiment.
USD/JPY traded at 98.43, not far from the previous session’s two-week high of 98.69. A weaker yen increases the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.
Index heavyweight Softbank saw shares climb 2.2% amid reports the company was in talks to buy a stake in U.S. mobile-phone distributor Brightstar.
The mobile telecom firm is also acquiring a 51% stake in Finnish mobile game maker Supercell for JPY150 billion.
Meanwhile, in Hong Kong, the Hang Seng edged lower in cautious trade as investors looked ahead to a raft of Chinese economic data on Friday.
The Asian nation is scheduled to release a government report on third quarter gross domestic product, as well as data on industrial production and retail sales figures for September.
Elsewhere, in Australia, the ASX/200 Index eased up to a fresh two-week high, as investors continued to assess the potential for an agreement to raise the U.S. debt ceiling and avert default before Thursday’s deadline.
Looking ahead, European stock market futures pointed to a lower open.
The EURO STOXX 50 futures pointed to a loss of 0.4% at the open, France’s CAC 40 futures declined 0.45%, London’s FTSE 100 futures indicated a drop of 0.2%, while Germany's DAX futures pointed to a loss of 0.1% at the open.
The U.K. was to release its monthly jobs report later Wednesday, while the euro zone was to produce reports on consumer prices and the trade balance.
During late Asian trade, Hong Kong's Hang Seng Index fell 0.6%, Australia’s ASX/200 Index ended 0.07% higher, while Japan’s Nikkei 225 Index closed up 0.18%.
Investors continued to monitor negotiations over a U.S. budget impasse that has kept the federal government shut down since October 1. Markets were also growing increasingly concerned over negotiations to raise the U.S. debt ceiling.
Senate leaders were continuing negotiations aimed at ending the fiscal impasse, after a last minute deal put forward by House Republicans collapsed on Tuesday.
The U.S. risks a sovereign debt default if the government borrowing limit is not raised by October 17.
Ratings agency Fitch placed its AAA-rating on the U.S. on “rating watch negative” on Tuesday and said a downgrade is possible. The firm said the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
In Tokyo, the Nikkei inched higher in choppy trade as the yen held near a two-week low against the U.S. dollar, boosting sentiment.
USD/JPY traded at 98.43, not far from the previous session’s two-week high of 98.69. A weaker yen increases the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.
Index heavyweight Softbank saw shares climb 2.2% amid reports the company was in talks to buy a stake in U.S. mobile-phone distributor Brightstar.
The mobile telecom firm is also acquiring a 51% stake in Finnish mobile game maker Supercell for JPY150 billion.
Meanwhile, in Hong Kong, the Hang Seng edged lower in cautious trade as investors looked ahead to a raft of Chinese economic data on Friday.
The Asian nation is scheduled to release a government report on third quarter gross domestic product, as well as data on industrial production and retail sales figures for September.
Elsewhere, in Australia, the ASX/200 Index eased up to a fresh two-week high, as investors continued to assess the potential for an agreement to raise the U.S. debt ceiling and avert default before Thursday’s deadline.
Looking ahead, European stock market futures pointed to a lower open.
The EURO STOXX 50 futures pointed to a loss of 0.4% at the open, France’s CAC 40 futures declined 0.45%, London’s FTSE 100 futures indicated a drop of 0.2%, while Germany's DAX futures pointed to a loss of 0.1% at the open.
The U.K. was to release its monthly jobs report later Wednesday, while the euro zone was to produce reports on consumer prices and the trade balance.