Asian stocks Market Down july 25 2011, impact debt ceiling in the U.S

Indonesia stock info - Asian stocks Market Down july 25 2011, impact debt ceiling in the U.S ; Asian stocks fell, led by banks and exporters, as the failure to raise the U.S. federal debt limit raised the prospect of a default that may threaten the global recovery.

Toyota Motor Corp., the world’s biggest carmaker by market value, slid 1.2 percent in Tokyo, leading consumer discretionary stocks lower. Honda Motor Co., the Japanese automaker which receives 44 percent of its revenue from the U.S., declined 1.1 percent. Commonwealth Bank of Australia, the nation’s biggest lender by market value, slipped 1.2 percent in Sydney. BHP Billiton Ltd., the world’s No. 1 mining company by market capitalization, slid 0.6 percent, leading raw material producers lower after oil prices declined.

“The ongoing saga of needing to raise the debt ceiling in the U.S. is likely to remain a concern for stock markets as the deadline heads closer with no apparent signs of agreement,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion. “If talks fail, we should expect a credit rating downgrade and another turn downwards in the U.S. economy.”

The MSCI Asia Pacific Index lost 0.7 percent 138.06 as of 9:47 a.m. in Tokyo. About four stocks fell for each that gained on the gauge. The measure gained 2.5 percent last week, erasing the regional benchmark index’s loss for the year, as steps by European leaders toward easing the region’s sovereign debt crisis, including fresh aid for Greece, boosted the earnings outlook for Asia’s banks and exporters.

Asian Benchmarks Fall

Japan’s Nikkei 225 Stock Average fell 0.6 percent while South Korea’s Kospi index declined 0.7 percent. Australia’s S&P/ASX 200 Index slipped 0.9 percent.

Futures on the Standard & Poor’s 500 Index fell 0.9 percent today. House Speaker John Boehner told Republicans that there’s no agreement on a plan for raising the U.S. debt ceiling before a default threatened for Aug. 2. A Republican congressional official said Boehner, speaking by telephone to lawmakers, is reporting that discussions are continuing. The impasse has boosted the chance S&P Ratings Service will cut the U.S. credit rating from AAA within three months to 50 percent, the company said July 21.

Asian exporters to the U.S. declined on concern failure to reach an agreement on debt talks may damp the economic recovery and jeopardize their earnings prospects.

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