Asian stocks and U.S. index futures fell, while the yen snapped a four-day slump and Treasury futures rose as American lawmakers struggled to reach an accord on raising the nation’s debt limit and restoring government operations. Crude oil and most industrial metals retreated.
The MSCI Asia Pacific excluding Japan Index dropped 0.2% by 8:56 a.m. in Singapore, with markets in Japan and Hong Kong closed for holidays. Standard & Poor’s 500 Index futures lost 0.8% after the gauge jumped 0.6% Oct. 11. The yen strengthened 0.3% while the currencies of Australia, Malaysia and Thailand weakened. Futures on 10-year U.S. Treasuries rose a second day. Crude oil in New York declined 0.5%. Copper sank 0.5% as nickel slid.
With the U.S.’s borrowing authority set to lapse Oct. 17, the Senate wrapped up almost four hours of debate in Washington without unveiling a deal. Majority Leader Harry Reid said he’ll continue talks with Minority Leader Mitch McConnell after negotiations between President Barack Obama and House Speaker John Boehner broke down Oct. 12. China issues inflation and producer prices data today after saying exports unexpectedly fell in September. India reports on wholesale prices.
“There was no miracle deal done over the weekend in Washington, and investors were hoping by Monday morning things would be clearer and we could think about something else for a change,” Richard Sichel, chief investment officer at Philadelphia Trust Co., where he helps oversee $1.9 billion, said in a phone interview. “Instead, the debt ceiling is there, and all those headlines get in the way of looking at fundamentals.”