Asian stocks fall as continuous blocking of U.S. debt

BEIJING (AP)--Asian stock markets fell Monday after the failure of the U.S. political leaders to reach an agreement to increase the debt of Washington limit which is crucial to prevent an imminent failure.The price of oil plunged below US $99 per barrel in the concern of investors that the absence of an agreement of the debt could damage the largest economy in the world and reduce the demand for crude oil.Investors were not reassured by assertion of Hillary rodham ClintonSecretary of State that the US economy is sound despite its current woes and the deadlock on the national debt.Speaking in Hong Kong, Clinton predicted an agreement on that debt could be reached before the deadline August 2 to avoid a failure without precedent. She said that the partisan debate over the debt ceiling is a reality of American politics.Japanese Nikkei 225 was off the coast of 0.8 per 100 in 10,050.01 and Shanghai Index the dragged China Composite 2.8% to 2,694.08. The two countries are major investors in the U.S. government debt. Index of Hong Kong Hang Seng lost 0.8 percent to 22, 266 83Elsewhere, Nestle the hangar 1% to 2,150.48 South Korea and S & P/ASX 200 the Australia fell by 1.6% to 4,530.40. Markets Singapore, Taiwan and Indonesia also dropped then the India and the Thailand managed small gains. "The only thing you can be sure in the next hours and days is the volatility as political posturing continues to the United States, said Ben potter, strategist, market for the IG markets, in a report.U.S. leaders had hoped to strike an agreement Sunday to reassure investors. Barack Obama President insisted on revenues, mainly thanks to tax cuts to expire the richest Americans, but Republicans want budget spending and rejected higher taxes.A failure would mean that the Government of the United States cannot pay all bills starting next month, including interest and principal on the bonds. That would cause some shock waves through the global economy and financial markets.Many analysts expect U.S. leaders to reach a last-minute agreement to increase the limit of 14.3 billion in government loan before the date limit on 2 August. But markets anxiously watching for what tax or spending changes could be part of the regulations.In China, railway shares fell after the deadly bullet of this weekend train crash in southeastern China. China South locomotive and rolling stock Corp. declined 8.6% and China railway group was off the coast of 7 per cent.The dollar had lost 78.43 78.38 late Friday in New York. The euro was little changed in 1.4372.Benchmark oil $ for delivery September was down 89 cents to $98.98 US per barrel in electronic trade on new york Mercantile Exchange. Crude rose 74 cents to settle at $99.87 on Friday.In London, gross Brent slipped 62 cents to $118.05 per barrel on the ice future exchange.