ASIA MARKETS: Asia Shares Fall; Japan's Nikkei Dips Below 14,000

By Mia Lamar

Asian shares were lower Friday, with Japan's benchmark Nikkei briefly falling below the 14,000 mark for the first time in nearly a month, as growing political uncertainty in the U.S. soured investor sentiment.

A partial government shutdown in the U.S. dragged on for the third day Thursday as lawmakers remained at an impasse over funding for the country's budget. The standoff comes just weeks before a crucial deadline to raise the nation's borrowing limit, a measure which also must be approved by lawmakers.

"Creeping worries about the U.S. debt ceiling are starting to unnerve investors," said Mike Jones, a currency strategist at the Bank of New Zealand in Wellington.

Japan's Nikkei was the worst performer Friday, trading down 1% after earlier glancing below key 14,000 level for the first time since Sept. 6. The U.S. dollar wavered between gains and losses, last changing hands at Yen97.21 compared with Yen97.12 late Thursday in New York.

Shares of electronics manufacturers Panasonic Corp. and Sharp Corp. each traded roughly 3% lower as the yen fluctuated between strength and weakness. A stronger yen increases price competition with overseas rivals.

Asian markets have been mostly resilient in the wake of the shutdown. Australia's S&P/ASX 200 , down 0.5% Friday, has closed higher in each session since the U.S. government shuttered on Tuesday. Hong Kong's Hang Seng Index , down 0.6% Friday, had gained nearly 2% since reopening from the National Day holiday Tuesday.

A 2.3% decline in China Mobile Ltd. shares, which carry the second-largest weighting on the Hang Seng Index, accounted for nearly a third of the index's loss. Reports in mainland media Thursday suggested China's telecom regulator may lower the interconnection fees that operators pay to China Mobile, the country's largest wireless carrier.

Elsewhere in Asia, Singapore's Straits Times Index dipped 0.3% and South Korea's Kospi fell 0.5%.

U.S. stocks fell across the board Thursday, sending the Dow Jones Industrial Average (DJI) below 15,000 for the first time in a month. The Dow closed down 0.9% at 14,996 and the S&P 500 index (SPX) fell 0.9% to 1679.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires