Asian stock markets were mixed after the US debt deal failed

Major Asian stock markets showed a mixed picture on Tuesday. Investors remained cautious as talks between President Joe Biden and Republican House Speaker Kevin McCarthy over raising the U.S. government’s debt ceiling have yet to result in a deal. Biden and McCarthy talked about constructive talks, which will continue this week. If a deal fails, the US will run out of money on June 1.

The Nikkei fell 0.5 percent in the final hour of trading in Tokyo, ending a seven-day winning streak. Investors made some gains as Japan’s main index hit its highest level since 1990. On the macroeconomic front, the country’s industrial activity was reported to have picked up again in May for the first time in seven months. Activity in the services sector also picked up further this month.

Japanese retailer Fast Retailing, owner of clothing chain Uniqlo, was one of the strongest risers with a small gain of 0.6 percent. Carmaker Toyota gained 0.3 percent and electronics group Sony gained 2 percent. SoftBank fell more than 1 percent after reports that the technology investor is selling its stake in U.S. asset manager Fortress Investment Group to Abu Dhabi-based investment fund Mubadala Capital.

Meanwhile, Shanghai’s stock market lost 0.6 percent and Hong Kong’s Hong Kong index fell 0.6 percent. Chinese chip companies fell after strong price gains a day earlier. Chipmaker SMIC fell 2.9 percent. Major tech and web store groups Alibaba and JD.com showed smaller declines of 0.2 and 0.4 percent. The Kospi in Seoul rose 0.6 percent. In South Korea, consumer confidence rose to its highest level in a year this month. All Ordinaries in Sydney won 0.1 percent.