Global Markets: Asian shares tumble
likely continue, said Kazuto Uchida, an executive officer and general manager of the global markets division at the Bank of Tokyo-Mitsubishi UFJ.
A key gauge to risk appetite is how far U.S. equities will decline and whether U.S. 10-year yields will drop to 1.5 percent, as some had predicted, he said.
The dollar was up 0.1 percent to hover near a two-month high against a basket of major currencies of 80.924 hit on Wednesday, benefiting from the U.S. currency's safe-haven appeal. The dollar fell 0.2 percent against another safe-haven currency, the yen, to 79.80.
Top U.S. Republican John Boehner said on Wednesday that Washington should find a short-term solution to avoid the fiscal cliff and then work on a substantive debt reduction plan in 2013.
The U.S. sovereign credit rating will not be affected for the time being as Moody's Investors Service said on Wednesday it will hold off on its judgment of whether to cut the rating until after the 2013 budget process is completed.
EURO FACES GLOOM
The euro stayed pressured at $1.2753, although it was off Wednesday's two-month low of $1.2736.
Sentiment was dented by a gloomy outlook for Europe after the European Commission said the euro zone economy would barely grow next year.
Greece's parliament narrowly voted to approve an austerity package early on Thursday to unlock vital aid and avert bankruptcy, despite internal rifts in both ruling New Democracy and PASOK parties and violent demonstrations.
The Greek vote is gone by, the flash
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