Asian stock markets tumble

Asian stock markets tumble

POSTED: Thursday, November 8, 2012 - 8:00am

UPDATED: Thursday, November 8, 2012 - 8:04am

Asian stock markets took a tumble in early trading thursday after a ratings agency threatened to further downgrade the U.S. if President Obama and congress cannot avoid the so-called fiscal cliff. If a deal is not reached by January 1st, tax increases will be imposed and $800 billion in spending cuts will automatically take effect.

Economists say a withdrawal of fiscal stimulus would be a calamity for the world's largest economy. The fear had an impact in Tokyo where the Nikkei Index lost 1.3% in early trading. In Seoul, the Kospi was also down 1.3% while Hong Kong's Hang Seng was off 1.2%.

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