Asia Roundup: Marts feel heat from Wall Street

HONG KONG: Asian markets mostly fell yesterday, following big losses on Wall Street, as the deadline approaches for US lawmakers to strike a deal to avert a disastrous default.

Adding to selling pressure was a decision by Standard & Poor's to downgrade Greece's credit rating, saying plans to restructure the country's debt would entail a default.

In Tokyo, the benchmark Nikkei average fell 145.84 points to 9,901.35, closing below the 10,000 mark for the first time since July 19, as the economic uncertainty sent traders into the safe-haven yen.

"Although the Nikkei broke under the psychologically critical 10,000-mark, it is still holding up relatively well compared with US markets, due in large part to generally strong 1Q earnings so far," said Kazuhiro Takahashi, general manager of investment strategy and research at Daiwa Securities.

In Shanghai, shares closed down 0.54 per cent after the banking watchdog acknowledged potential risks due to local government debt and property market lending. The composite index ended down 14.72 points.

"The market may continue to find its near-term bottom as strict requirements from Beijing may spark concerns over the quality of local government debt which has plagued banks over the past few months," Capital Securities analyst Jacky Zhang told Dow Jones Newswires.

Sydney shed 1.62 per cent, or 73.6 points, to 4,463.8 and Seoul gave up 0.85 per cent, or 18.46 points, to end at 2,155.85.

The White House and Democrats and their Republican rivals continue to bicker over a deficit-slashing plan that would allow a hike in the US debt ceiling.

The troubles sent Wall Street lower on Wednesday, with the Dow Jones Industrial Average plunging 198.75 points (1.59 per cent) to close at 12,302.55. The broader S&P 500 fell 27.05 points (2.03 per cent) to 1,304.89,

In other markets:

* Taipei fell 0.57 per cent, or 50.29 points, to 8,767.20.

* Manila closed flat, edging down 0.09 points to 4,482.80.

* Jakarta lost 0.68 per cent, or 28.29 points, to end at 4,145.82.

* Bangkok rose 0.32 per cent, or 3.67 points, to 1,134.38.

* Mumbai shares fell 1.21 per cent, with the benchmark 30-share Sensex index down 222.73 points to 18,209.52, its third straight day of losses. - AFP