Asian markets hit, Syrian crisis sparks global sell-off

Asian stock markets have fallen, extending a global sell-off sparked by growing fears of a military strike against Syria.

Japan's Nikkei 225 index dipped 2.3%, Hong Kong's Hang Seng was down 1.3% while Australia's ASX 200 fell 1.1%. This follows declines in US and European markets on Tuesday.

Speculation of a strike against Syria, also triggered fears over global oil supplies pushing up crude prices to an 18-month high. Although Syria is not a significant oil producer, there are fears for the stability of the wider Middle East, which produces about a third of the world's oil.

"If Syria becomes drawn out and becomes a long-term issue, it's going to show up in things like gas prices,'' said Chris Costanzo, an investment officer with Tanglewood Wealth Management. As well as the rise in Brent crude, the price of US crude jumped $3.09 to close at $109.01 a barrel.

The fears of a strike follow reports of a suspected chemical attack last week near the Syrian capital, Damascus, which reportedly killed more than 300 people. On Tuesday, US Defence Secretary Chuck Hagel said that American forces are 'ready' to launch strikes if President Barack Obama ordered an attack. President Obama is due to outline future US action on Syria in the coming days.

Analysts said that investors were concerned that the crisis may escalate and result in political and economic instability in the region.

"People worry about this becoming a worst-case scenario and turning into a regional conflict," said chief investment strategist at PNC Asset Management, Bill Stone. On Tuesday, Germany's Dax and the French Cac 40 indexes ended down about 2.5%. In London, the FTSE 100 index closed down by 0.8%.

In the US, the Dow Jones fell 1.1% to 14,776.13, a two-month low. Meanwhile, gold which is traditionally seen as a safe haven in times of uncertainty, rose $27 to $1,420 an ounce.

BBC