U.S. stocks fell, giving the Standard & Poor’s 500 Index its biggest two-day loss since June, as concern grew that a deadlock among U.S. lawmakers over the debt limit could lead to a government default.
Risk appetites in American capital markets diminished amid the U.S. budget impasse, pushing Treasury one-month bill rates to the highest since 2008 and Internet stocks to the biggest losses in two years.
Asian stocks fell, with the benchmark index capping the first weekly drop in seven weeks, as the yen’s gain weighed on Japanese shares and earnings from HSBC Holdings Plc to Nikon Corp. disappointed investors.
Stocks rose for a second day and industrial metals rallied as slower-than-forecast Chinese inflation eased pressure on policy makers to tighten credit. The yen rebounded after a three-day slump took it to the weakest level since 2009 while the dollar weakened versus most peers.