Asia stocks fall after U.S. downgrade

SYDNEY (MarketWatch) — Asian shares dropped on Monday, with investors shaken after a U.S. government debt downgrade.

Japan’s Nikkei Stock Average JP:100000018 -1.78%  fell 1.7%, while the Australian S&P/ASX 200 index AU:XJO -1.80%  lost 1.7% and South Korea’s Kospi KR:0100 -3.07% declined 3.3%.

The losses were worse for Chinese shares, as Hong Kong’s Hang Seng Index HK:HSI -3.90%  dropped 3.8%, while the Shanghai Composite IndexCN:000001 -3.68%  fell 3.7%.

http://www.marketwatch.com/story/asia-stocks-fall-after-us-downgrade-2011-08-07

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This will be a historic week ahead in the markets.  The US market will be effected by not only the downgrade from S&P, but also by the ECBs decision to buy Italian bonds.