Asian stocks fell overnight after a US congressional committee charged with reducing the nation's deficit failed on Monday to agree on cuts.

Japan's main index fell 1% on opening before clawing back some of the losses, while Hong Kong's Hang Seng Index lost 1% and Australia's S&P/ASX 200 declined 0.7%.

US stock indexes lost about 2% on Monday as reports emerged that a so-called debt 'super-committee' was not able to reach agreement. The Dow Jones lost 250 points to 11,547.

Made up of both Republicans and Democrats, the committee was tasked with cutting the country's budget deficit by $1.2trn (£762bn). US debt has now climbed above $15trn.

The breakdown in talks triggers $1.2trn in automatic spending cuts that will go into effect from January 2013.

Ratings agencies were minded to say they won't lower the US's credit rating as a result of the committee's failure to reach an agreement. Standard & Poor's, which stripped the US of its top AAA grade in August, said the political gridlock didn't merit another downgrade.

Where the 2013 cuts will fall

· $492bn from defence (equivalent to 9% of Pentagon's $5.3trn budget)

· $322bn from drug enforcement, education, health, national parks

· $47bn from agriculture

· $123bn from Medicare (a 2% cut in $6.1trn budget)

Protected areas include social security, Medicaid, veterans' benefits, federal retirement benefits

Source: The Times