Stocks in Japan opened lower Monday as Asian markets reacted to the failure of U.S. leaders to reach a deal on the nation's debt limit.
NEW YORK (CNNMoney) -- Asian stocks opened lower Monday, the first reaction in major markets after congressional leaders and the Obama administration failed to reach agreement on a deal to raise the U.S. debt limit.
Tokyo's Nikkei 225 was down 0.6% to 10,087 about 90 minutes after the start of trading. (Check the latest in world markets)
In Hong Kong, the Hang Seng index lost 0.8% in the first minutes of trading. The Shanghai Composite index declined 0.6%.
In Sydney, the Australian Stock Exchange's All Ordinaries index was down 0.8%.
Meanwhile, trading in U.S. stock futures -- which indicates the likely direction when actual stock trading begin Monday morning -- were lower. S&P 500, Nasdaq-100 and Dow Jones industrial average futures were down a little less than 1%.
President Obama and congressional Republicans have been at odds for weeks over a debt-reduction plan that some lawmakers demanded in response for raising the debt ceiling.
The United States hit the debt ceiling in May. Treasury Secretary Tim Geithner has said that by Aug. 2 he will no longer have enough cash to pay all the country's bills on time.
Legislative leaders on Capitol Hill spent the weekend in talks trying to strike a deal in time to make an announcement before the Asian markets opened. After expectations were raised of a possible deal earlier Sunday, weekend talks to resolve the nation's debt-ceiling crisis appeared to reach a new impasse as each side pursued a separate plan.
-- The CNN Wire contributed to this report 
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