Asian stock markets sink on us fears of debt

HONG KONG (AP) - Asian stocks sank Thursday as legislators U.S. struggled to another day to reach a compromise that would prevent a default value of the debt in the largest economy in the world.Oil did not $97 per barrel. The dollar weakened against the yen and strengthened against the euro.Investors have grown increasingly worried that the US Government came another day closer to a deadline August 2 to lift 14.3 billion of the country limited borrowing.If there is no legislation in place by then, said that Treasury will not be able to pay the invoices of the nation and trigger possible catastrophic default on its debts. Investors fear that such a failure would send shock waves through world financial markets, as the US economy is still struggling to recover from the worst recession in decades.The stock market will likely increase more volatile that any possible solution summarizes the plans of the House of representatives wireThe a vote Thursday on a Republican regime to reduce spending and increase the limit of the loan. Leaders of the Senate look what is happening to this plan before going ahead with their own. "As the 2nd August deadline is imminent and there has been no progress so far, concerns about the downgrade rating of U.S. credit, and debt default spread on the market of equity as well,"strategists at credit agricultural IPC wrote in a research note." "For the next day, market sentiment will remain probably pessimistic."Stock average Japanese Nikkei 225 has sunk to 1.1% to 9,935.07 and South Korea Nestle fell 0.9% to 2,154.85. S & P/ASX 200 the Australia fell by 1.1% to 4, 487.10.Hong, Chinese Kong Hang Seng dragged 1.2% to 22,258.34 and index Composite of Shanghai of the continent fell 1.3% to 2, 687.92.Benchmarks New Zealand, Singapore and Taiwan also decreased.Asian stocks took their lead after a decline Wednesday markets us, indicating a growing concern among investors over the impasse over the debt.The Dow Jones industrial average fell by 1.6% to 12,302.55, falling more than a day since early June. It decreased by 4 consecutive days. The S & P 500 fell or 2 percent to 1,304.89. The Nasdaq composite fell index or the 2.6%, to 2,764.79, focused on the technology its worst day in five months.In foreign exchange, the dollar weakened 77.77 78,06 end Yen Wednesday in New York. The tomb of euro to $1.4344 1.4372.Benchmark oil $ for September delivery dropped 60 cents to $96.80 US per barrel in electronic trade on new york Mercantile Exchange. Crude lost $2.19 to $97.40 Wednesday.