MSCI Asia Pacific Index dropped july 29 2011, Decline on U.S. Debt Deadlock

Indonesia stock info - MSCI Asia Pacific Index dropped july 29 2011, Decline on U.S. Debt Deadlock ; Asian stocks fell, dragging down the benchmark index for the week, after the U.S. Congress delayed a vote on a plan to raise its borrowing limit, increasing concern the country will default on its debt.

The MSCI Asia Pacific Index dropped 0.5 percent to 136.92 as of 12:27 p.m. in Tokyo. About two shares fell for each that rose on the gauge. The measure is headed for a decline this week as forecasts for higher earnings at companies from Canon Inc. to Baidu Inc. were overshadowed by concern the U.S. may default on its debt if lawmakers can’t reach an agreement on raising the government’s borrowing limit by Aug. 2.

Nintendo Co., maker of the Wii game console, plunged 20 percent, the most in at least 20 years after slashing it profit outlook and discounting the price of one its main products.

Taiwan Semiconductor Manufacturing Co. dropped 1.5 percent in Taipei after the chipmaker said profit declined for the first time in almost two years. AIA Group Ltd. (1299), the third-largest Asia-based insurer by market value, advanced 2.5 percent after first half profit beat estimates.

“If a resolution in the U.S. is not reached, clearly the economy will suffer so that demand will wane significantly, and we’ll see pressure on Asian exporter earnings and shares,” said Chris Hall, who helps manage $4 billion of assets at Argo Investments Ltd. in Adelaide. “Earnings are mixed across the spectrum. There are still a lot of unknowns right now, and everyone’s incredibly cautious.”

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