On Wednesday, the Asian share prices had decreased as the US budget deadlock went on, said a Reuters report. The partial shutdown of the US government had caused a loss of enthusiasm from investors' confidence. This was after a deal was said to be possibly reached by mid-October deadline, according to a Reuters report. The US lawmakers should reach a deal to avoid a default on the US debt.
Markets had been expecting that US politicians would eventually strike a deal. However, markets remain nervous as the deadline would come soon without any tangible progress between US Democrats and Republicans continued the report.
MSCI's broadest index of Asia-Pacific shares outside Japan had dipped by 0.3%. Meanwhile, Japan's Nikkei average had erased earlier losses while holding a near five-week low.
According to the chief fixed income strategist Tohru Yamamoto of Daiwa Securities, "Everyone had been thinking that U.S. politicians will become grown-ups in the end. But some people are starting to think they look too childish to become grown-ups in time."
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