Asia markets mostly lower amid lingering concerns over the U.S. debt ceiling negotiations; Bank of Korea holds rates

Japan +0.22%.

China -0.35%.

Hong Kong -2.01%.

Australia -1.10%.

India -0.13%.

Overnight in the U.S., all three major indexes fell as investor concerns over the debt ceiling mounted and ratings agency Fitch put the United States’ AAA rating on negative watch. Dow ended in the red for the fourth session in a row, falling 0.8% to settle at 32,799.92 points. The benchmark S&P 500 closed down 0.7% at 4,115.24 points, and Nasdaq Composite ended 0.6% lower at 12,484.16 points.

Turning to economic data, weekly mortgage applications fell 4.6% as borrowers remain sensitive to higher rates. Meanwhile, business uncertainty continued to stay above pre-pandemic levels, an Atlanta Fed survey showed.

Bank of Korea leaves its base rate unchanged at 3.5%, as expected.

The South Korean PPI has risen at its slowest y/y rate since January 2021 to 1.6% year on year in April, lower than the 3.3% rise seen in the previous month.

Singapore Q1 GDP (final) -0.4% q/q (expected -0.6%) and +0.4% y/y (expected +0.2%).

Indonesia will also announce its benchmark interest policy rates on Thursday.

US futures lower. Dow Jones -0.29%; S&P 500 +0.34%; Nasdaq +1.32%.