MANILA, Philippines (AP) Asian stock markets fluctuated between gains and losses Wednesday as a deadline for divided U.S. lawmakers to agree on a higher government borrowing limit drew ever closer.
Unless Congress acts by Thursday, the government will lose its ability to borrow and will be required to meet its obligations by relying on cash in hand and incoming tax receipts. That could mean the U.S. is unable to repay holders of Treasury bills that mature in coming days and would be in default on its debt.
Japan's Nikkei 225 was up 0.2 percent at 14,464.04 while Hong Kong's Hang Seng dropped 0.4 percent to 23,226.53. China's Shanghai Composite fell 1.4 percent to 2,203.34. Australia's S&P/ASX 200 added 0.2 percent to 5,268.20.
Stock indexes in Singapore, Malaysia, New Zealand and the Philippines eked out modest gains.
"The market is still relatively calm waiting for the storm to hit tomorrow, when the U.S. will reach its debt ceiling and then default will follow and all hell will break loose," said Francis Lun, chief economist at GE Oriental Finance Group in Hong Kong.