Asia Roundup: Easier on eurozone, US issues

HONG KONG: Asian stocks edged down yesterday on fears US lawmakers will not agree a budget to avoid a default in the world's number one economy as well as the ongoing eurozone crisis.

Investors chose to brush off news that fewer than expected European banks had failed stress tests, while the euro suffered fresh selling pressure and gold hit a record high above US$1,600 an ounce.

Shanghai's composite index was down 3.48 points, or 0.12 per cent, at 2,816.69.

"There are worries that the second half could see further (economic) slowing, and that is having an effect on financial stocks in particular," Zhang Zhuo, an analyst at Minsheng Securities, told Dow Jones Newswires.

Sydney ended flat, with the S&P/ASX 200 index edging down 1.5 points to 4,472.

Shares in Rupert Murdoch's embattled News Corporation ended 4.13 per cent, or 61 cents, lower at A$14.16 on heavy volumes, having clawed back from a 7.6 per cent slump that saw it touch a two-year low of A$13.65.

Seoul's Kospi closed 0.69 per cent, or 14.72 points, lower at 2,130.48.

Tokyo was closed for a public holiday.

Traders are growing nervous over the US, where President Barack Obama and the Republican party struggled to make progress at the weekend in hammering out a deal to raise the debt ceiling.

The eurozone crisis also continues to weigh as officials struggle to make headway on a second bailout for Greece.

Traders were little moved by Friday's announcement by the European Banking Authority that just eight lenders out of 91 had failed its stress tests.

Prakash Sakpal, an economist at ING Financial Markets Research, told Dow Jones Newswires: "The debt crisis in the US and European Union will remain the main driving force for global markets this week and beyond."

In other markets:

* Mumbai fell 0.30 per cent, or 54.88 points to 18,507.04.

* Taipei fell 0.42 per cent, or 36.34 points, to 8,538.57.

* Manila rose 0.39 per cent, or 17.27 points, to 4,476.01.

* Jakarta rose 0.24 per cent, or 9.77 points, to 4,032.97.

* Bangkok rose 0.37 per cent, or 4.03 points, to 1,083.94. - Agencies