TCL Associates Report Asian Markets Decline On Syria Concerns
Posted Oct 07 2013 7:03am
1888PressRelease - After rallying on Monday and Tuesday, the Asian markets fell over worries of military intervention in Syria. The yen weakened helping Japanese shipping firms. Bank of America sold its stake in China Construction bank as more American funds flow out of Chinese financials.
Despite being given a positive lead in by Wall Street the Asian Markets broadly declined after the potential of a US strike on Syria returned to the forefront. Speaker of the House of Representatives, John Boehner stated that he supports President Obama demand for intervention in Syria. The Heads of the Senate Foreign Relations committee has also authorized a limited military strike against the country. It is expected to be voted on by the full Senate next week.
The Chinese markets retreated after positive PMI data from Europe and China boosted the Hang Seng more than 4% on Monday and Tuesday. On Wednesday in Hong Kong, the Hang Seng declined 0.3%, but the Shanghai Composite on the mainland managed to climb 0.2%. China Construction Bank fell 1.4% after Bank of America sold its stake in the lender for $1.5 billion.
In Tokyo, The Nikkei Stock Average gained 0.5% as the yen continued to weaken. It is currently trading at 99.62 yen to the dollar from 99.57 yen to the dollar on Tuesday. The positive PMI data and weakened yen also helped to boost Japanese shipping companies. Kawasaki Kisen Kaisha jumped 3.1% and Mitsui OSK Lines gained 2.1%. Honda Motor Co. climbed 0.6% after reporting that it will raise its annual dividend as it expects a strong 12 months of earnings. Cannon Inc. rose 3.8% after the camera manufacturer stated that it will buy back 18 million of its own shares, it plans to spend $502 million on the buy back.
In Australia, the S&P/ASX 200 dropped 0.7% as banks and resource firms fell over concerns about Syria. Westpac Banking Corp. declined 1% and the Commonwealth Bank of Australia declined 0.4%.