Markets in Japan, Hong Kong, Thailand Drop as U.S. Leads Syria Strike

Hiruki Nakamura
28 Aug, 2013
New York City

Stocks in Tokyo traded lower and the Nikkei extended losses as the prospect of U.S.-led military strike against the Syrian regime increased. The yen gained against the dollar. Toyota, Honda, Nissan and Sony fell more than 2%. Turkish lira and Indian rupee drop to record lows.

[R]4:30 PM Tokyo – Stocks in Tokyo traded lower and the Nikkei extended losses as the prospect of U.S.-led military strike against the Syrian regime increased. The yen gained against the dollar. Toyota, Honda, Nissan and Sony fell more than 2%.[/R]

Stocks in Tokyo declined as geopolitical worries rose and tensions in the Middle East increased.

U.S., UK and allies are preparing for military strike against Syria that could engulf the Middle East in wider conflict.

The military strike is targeted as Syrian government forces and support the rebels without a leader and investors fear the repeat of ensuing chaos after a similar strike against Iraq that led to more civilian deaths and severe economic decline.

In addition, investors focused on the weakening sentiment in the emerging markets and rupee in India and lira in Turkey dropped to record lows.

The Nikkei 225 Stock Average declined 203.91 or 1.5% to 13,338.46 and the Topix slid 19.99 or 1.8% to 1,114.03.

The yen increased as much as 1.5% against the dollar and closed at 97.56.

In a widespread sell off in Asia, market indexes in Shanghai, Hong Kong and Thailand fell more than 1%.

Stocks in Review

Toyota Motor Corp slumped 140 yen to 6,020 yen.

Honda Motor Co. dropped 90 yen to 3,610 yen after the automobile maker said production in Japan in July decrease for the eighth consecutive month. Production in the rest of the world climbed for the eighteenth consecutive month and reached to a record high in July in the U.S. and record in Asia from a year ago.

Total exports from Japan in July declined for the thirteenth consecutive month from a year ago.

Nissan Motor Co Ltd declined 26 yen to 983 yen and the automaker plans to introduce self-driving cars on the road by 2020.

Mazda Motor Corporation declined 3% to 387 yen after the automobile company said total domestic production volume in July 2013 increased 24% but overseas production declined 17.9%.

Sony decreased 70 yen to 1,967 yen.

Softbank Corp fell 120 yen to 6,120 yen and Fast Retailing Co. slid 260 to 30,900 yen.