WELLINGTON: Asian stocks are likely to be cautious on Tuesday as investors await confirmation that U.S. lawmakers have inked a deal to avert a debt default, and data suggested the world's biggest economy is still struggling to gather momentum.
U.S. markets trimmed their losses late in the session as Congress was expected to vote on the package which includes spending cuts of $2.4 trillion over 10 years.
The deadline for a deal, which includes raising the U.S. borrowing limit, is Tuesday at midnight U.S. time.
Wall Street had a volatile day, reflecting the to-ing and fro-ing in Washington, while stocks fell after the Institute for Supply Management said the U.S. manufacturing sector grew at the slowest pace in two years in July. The ISM report followed similarly weak reports from much of Asia and Europe.
The main U.S. indices closed between 0.1 percent and 0.4 percent lower, although the S&P 500 pushed back above its 200-day moving average, which has been a strong support level over the past two months, offering some comfort to investors.
Asian stocks listed on Wall Street rose 0.3 percent, while world stocks, as measured by the MSCI world equity index, eased 0.5 percent.
British shares fell 0.7 percent while European ''shares were down 1.3 percent, as the weak U.S. data weighed.
Japanese markets, which pushed through the 10,000 level at one stage on Monday, are set to be more restrained. Nikkei futures traded in Chicago were 145 points below the last closing level in Osaka.
Australian stocks face a soft open with share price index futures down 1.6 percent to be at a 94.8 point discount to the close of the underlying S&P/ASX 200 index. ' Reuters
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U.S. markets trimmed their losses late in the session as Congress was expected to vote on the package which includes spending cuts of $2.4 trillion over 10 years.
The deadline for a deal, which includes raising the U.S. borrowing limit, is Tuesday at midnight U.S. time.
Wall Street had a volatile day, reflecting the to-ing and fro-ing in Washington, while stocks fell after the Institute for Supply Management said the U.S. manufacturing sector grew at the slowest pace in two years in July. The ISM report followed similarly weak reports from much of Asia and Europe.
The main U.S. indices closed between 0.1 percent and 0.4 percent lower, although the S&P 500 pushed back above its 200-day moving average, which has been a strong support level over the past two months, offering some comfort to investors.
Asian stocks listed on Wall Street rose 0.3 percent, while world stocks, as measured by the MSCI world equity index, eased 0.5 percent.
British shares fell 0.7 percent while European ''shares were down 1.3 percent, as the weak U.S. data weighed.
Japanese markets, which pushed through the 10,000 level at one stage on Monday, are set to be more restrained. Nikkei futures traded in Chicago were 145 points below the last closing level in Osaka.
Australian stocks face a soft open with share price index futures down 1.6 percent to be at a 94.8 point discount to the close of the underlying S&P/ASX 200 index. ' Reuters
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