Asian markets fell Monday as U.S. lawmakers’ failure to reach a weekend deal to increase the nation’s debt ceiling heightened investor worries about a default.
In Japan, the Nikkei 225 average skidded 82.10 points, or 0.8%, to 10,050
Hong Kong’s Hang Seng Index backed off 151.51 points, or 0.7%, to 22,293.30
Losses in the rest of the region came after U.S. politicians haggled into Sunday night in Washington about raising the country’s debt ceiling by Aug. 2 to avoid a potential default, but couldn’t reach an agreement.
Sony Corp. slid 2.2%, Honda Motor Co. dropped 1.6%, and Toyota Motor Corp. declined 1.4% in Tokyo.
South Korean exporters were also weak, with LG Electronics Inc. trading down 1%, and Hyundai Motor Co. 1.1% lower.
Airline stocks rose in Hong Kong, meanwhile, on hopes for a brighter outlook for air travel.
Air China Ltd. added 3.6%, and China Southern Airlines Co. gained 3.4%.
Among financial sector stocks in Asia, HSBC Holdings PLC gave up 0.6% in Hong Kong and Commonwealth Bank of Australia lost 1.9% in Sydney. Mitsubishi UFJ Financial Group Inc. shed 2% and Mizuho Financial Group Inc. lost 1.5% in Tokyo.
Regional energy sector stocks also lost ground as benchmark Nymex crude-oil futures eased back below $99 U.S. a barrel for a large part of the Asian session.
PetroChina Co. dropped 2.9%, and Cnooc Ltd. shed 1.2% in Hong Kong; Shanghai-listed shares of PetroChina fell 2.1%.
Woodside Petroleum Ltd. lost 2.4% in Sydney.
Shares of AWE Ltd. tumbled 10.2% in Sydney after the company said reserves at its Tui oil field assets could be lower than estimated earlier.
CHINA
Mainland Chinese shares tumbled on lingering worries about the nation's economic growth outlook, with railway stocks hit especially hard after a high-speed rail system accident over the weekend
Shanghai’s CSI 300 Index faltered 99.70 points, or 3.3%, to 2,968.29, its worst one-day percentage loss since January, after Saturday’s collision of two high-speed railway trains. At least 35 people were estimated killed in the pileup, according to reports
Shares of China Railway Erju Co. dropped 5.1% and China Railway Tielong Container Logistics Co. tumbled 8.6% in Shanghai, shares of China Railway Construction Group Co. each sank 6.7% in Hong Kong, in addition to losing 5.9% and 5.7%, respectively, in Shanghai
In other markets
Korea’s Kospi Index lost 20.75 points, or 1%, to 2,150.48
Taiwan’s Taiex Index fell 81.81 points, or 0.9%, to 8,683.51
Singapore’s Straits Times Index slid 11.40 points, or 0.4%, to 3,171.55
New Zealand’s NZX 50 Index demurred 21.07 points, or 0.6%, to 3,428.15
Australia’s S&P/ASX 200 Index stumbled 72.50 points, or 1.6%, to 4,530.40
