Asian Shares Ease Amid US Budget, Fed Uncertainties


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Asian stocks slipped as the United States faces a budget showdown in Washington and Fed uncertainty lingers.

House Speaker John Boehner and his Republican caucus are pushing the federal government closer to a shutdown in a fight over funding and the debt limit, Democrats Max Baucus and Patty Murray said in a letter to colleagues on Monday.

Meanwhile, investors are parsing Fed speak for ideas of how strong the economy is and whether the Fed may taper its bond-buying program.

Federal Reserve Bank of New York President William Dudley said the economy has yet to show "any meaningful pickup" in momentum. Fed Bank of Atlanta President Dennis Lockhart said monetary policy should focus on creating a more dynamic economy. Fed Bank of Dallas President Richard Fisher said the central bank harmed its credibility with the decision last week.

China's property stocks came under pressure after the official China Securities Journal said that the government is organizing a new round of training next month to prepare tax officials to introduce property taxes.

Banking shares in China fell, too, after an editorial in the China Securities Journal said that financial reforms will be a priority at a policy meeting later this year.

In ADR news, China Unicom Hong Kong Ltd.( CHU ), China Telecom ( CHA ) and China Mobile Ltd. ( CHL ) all posted overall subscriber growth of less than 1.5% apiece in August, according to Reuters. However, ( CHL ) outperformed in 3G subscriber growth with a 7.9% gain, versus 3.8% for ( CHU ).

Japan returned on Tuesday from a holiday. It ended down 0.7% at 14,732.61, the Hang Seng down 0.82% at 23,179.04 and the Straits Times down 0.08% at 3,211.75.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Commodities
More Headlines for: CHA , CHL , CHU

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