Asian Stocks Fall as Congressional Budget Office Reaches Deadline

Asian stocks have fallen a fifth day, as have Standard & Poor’s 500 Index futures and the Australian and New Zealand dollars. The MSCI Asia Pacific Index fell 0.4% in Tokyo, nearing to longest losing streak since August.

According to a Democratic aide, the congressional committee should be announcing its failure to reach an agreement on $1.2 trillion in federal budget savings. Japenese exports saw declines for the first time in a quarter, and Singapore predicts slow economic growth next year.

“There’s likely to be a continuing impasse and people will focus on the stability of the U.S. politically,” Tim Schroeders of Pengana Capital Ltd. said. “People will probably sit on the sideline and wait for clarity.”

Futures which expire in December show that the S&P 500 may extend its 3.8% decrease. Today marks the deadline for the Congressional Budget Office to receive a potential plan. The Congressional panel has thus far been deadlocked over taxes, while Democrats seek tax increases and Republicans push for tax cut extensions.

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