The growing likelihood of Western military action against Syria pummeled Asian stock markets on Wednesday and sent the prices of oil soaring.
Fears that the US, Britain and other countries are gearing up to confront Syria over its alleged use of chemical weapons against civilians rose after Defence Secretary Chuck Hagel said the US military stands ready to strike against Syria if President Barack Obama gives the order.
“While we believe that the market tensions should not last for too long ... sentiment will continue to be under pressure until the situation shows signs of easing,” Anthony Lam of Credit Agricole CIB in Hong Kong said in a market commentary.
Japan’s Nikkei 225 index sank 2.3 per cent to 13,228.28.
Hong Kong’s Hang Seng dropped 1.4 per cent to 21,574.15. South Korea’s Kospi declined 0.5 per cent to 1,876.95. Australia’s S&P/ASX 200 tumbled 1.2 per cent to 5,081.90. Benchmarks in the Philippines, Indonesia and mainland China also fell.
US stocks were hit with a broad sell-off on Tuesday. The Dow Jones industrial average lost 1.1 per cent to close at 14,776.13. The Standard & Poor’s 500 index declined 1.6 per cent to close at 1,630.48. The Nasdaq composite was down 2.2 per cent, to 3,578.52.