A possible government shutdown in the U.S. loomed large in Asia Monday, sparking a selloff across the region’s stock markets.
The Nikkei 225 index in Japan plunged 304.27 points, or 2.1%, to 14,455.80. The benchmark was also whipsawed by sharp moves in the U.S. dollar, which last changed hands at 97.86 yen after earlier falling to a one-month low of ¥97.53.
In Hong Kong, the Hang Seng index plummeted 347.18 points, or 1.5%, to 22,859.86
U.S. budget talks hit an impasse over the weekend as lawmakers wrangled over funding for President Obama’s signature health law.
Congress must pass a budget before Tuesday to avoid a partial shutdown of the federal government, but jabs traded by Washington leaders over the weekend indicated that passage remains far from certain.
In Sydney, markets dropped much of their strength, wiping out almost all gains added over the past two weeks as the index touched levels not seen since before the global financial crisis.
Market participants noted that Monday’s selloff lacked conviction and came amid light trading volumes across the region in advance of China’s week-long Golden Week holiday.
CHINA
The Shanghai CSI 300 index bucked the trend and actually gained 14.07 points, or 0.6%, to 2,409.04, capping a standout quarter that sent the index up 9.9% as China’s economy showed steady signs of stabilization.
In other markets;
Korea’s Kospi index subtracted 14.84 points, or 0.7%, to 1,996.96
Taiwan’s Taiex index dumped 56.81 points, or 0.7%, to 8,173.87
The Singapore Straits Times Index stepped back 42.31 points, or 1.3%, to 3,167.87
In New Zealand, the Exchange 50 Gross Index backtracked 46.29 points, or 1%, to 4,736.39
In Australia, the S&P/ASX 200 slipped 88.18 points, or 1.7%, to 5,218.88
