Markets fall on $2bn US shutdown fears

Markets across Asia have fallen on news the US government may be headed for its first shutdown of services in almost 20 years.

Japan, Hong Kong, Australia and South Korea all suffered falls this morning on news of the potential halt in US government. Republicans in the House of Representatives agreed to fund the US government over the weekend, with the stipulation the Democrats agree a year delay to President Obama's healthcare reform plan. However, this proposal was rejected by Obama, who said he will not compromise on healthcare reform legislation. Unless a last minute agreement is made this evening by the Republicans and the Democrats, the closure of the government is predicted. Estimates have sugges...