Asian markets closed with heavy losses on the first trading day of the week. Traders are selling off the riskier assets due to the deadlock of government shutdown in Washington. Over the weekend, it was expected that politicians will come to their senses and will make some sort of resolution, but John Beohner showed no sign of making a negotiation and reconfirmed that the US debt ceiling will not be lifted without addressing the long term spending and budget cuts.
Uncertainly is something which markets and traders do not want to see and as we are approaching into the second week of US government shutdown, the muted reaction which we have seen so far is becoming louder.
The Nikkei index was the worst performer during the session and it closed lower with a loss of -1.22%. The index is down nearly by -6.15% in the past 5 days. The Hang Seng index was the second worst index during the session and it dropped nearly -0.75%. While, the Shanghai index was closed due to a national holiday.
Sumitomo Mitsui Financial group soared nearly 0.1% after the company revised its earnings outlook. While, the sterilization services company Blumont Group lost nearly 85% after tougher trading rules were applied to the company.
European stock markets are also trading lower during the early hours of trading. The DAX index is the worst performing index during the session which is trading lower with a loss of -1.16%. The index is down by nearly -1.56% for the past five days. The CAC 40 index is the second worst performer and is also trading down with a loss of -1.18%. The IBEX 35 and the FTSE MIB are also trading lower with a loss of -0.76%, and -0.20% respectively.