US law makers may have cleared their first hurdle towards sealing a debt deal but Asian markets opened in negative territory only hours after the House of Representatives vote.
Shares fell on concerns that the US still won’t be able to avoid a credit rating downgrade making borrowing for the super economy all the more expensive.
Hong Kong followed the trend – the US economy clearly is not out of the woods due to rising unemployment and sluggish growth figures.
And Sydney stocks reflected a growing belief that the economic momentum in the US has slowed. It means some countries are already cutting their exposure to the US dollar.