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Hong Kong - Asian markets were mostly lower Tuesday over fears of US military intervention in Syria.
US Secretary of State John Kerry warned Syria it would face action over the "moral obscenity" of a chemical weapons attack, as expectations grow that Washington and its allies are preparing to launch a punitive missile strike.
Tokyo ended down 0.69% and Seoul closed 0.11% lower. But Sydney gained 0.11% on profit-taking, following early losses after some poor earnings reports.
Surfwear retailer Billabong International plunged 10.6% while Seven Group dived 9.6%.
In the afternoon Hong Kong was down 0.62% and Shanghai was off 0.22%.
"Lower futures (contracts), a lower dollar, lower Wall Street stocks, and the heightened probability of an internationalised Syrian conflict should send the market at least modestly lower today," said SMBC Nikko Securities analyst Hiroichi Nishi.
Oil prices rose over fears of renewed instability in the Middle East. New York's main contract, West Texas Intermediate for delivery in October, was up 30 cents to $106.22 a barrel in afternoon trade. Brent North Sea crude for October added 32 cents to $111.05.
"Syria is politically quite close with Iran, so investors will worry that an international conflict in Syria could at some point destabilise world oil supplies," said Shane Oliver, chief economist at AMP Capital in Sydney.
The dollar was at ¥98.29 in Tokyo afternoon trade, down from ¥98.51 in New York Monday afternoon.
The euro bought $1.3373 and ¥131.45 compared with $1.3369 and ¥131.68.
"The possibility of US military attacks could make investors risk-averse, weighing on the dollar," a dealer at a Japanese bank told Dow Jones Newswires.
Emerging Asia currencies were mostly lower, with the Indian rupee trading at 65.32 to the dollar, down from 64.23 Monday afternoon and close to a record low of 65.56 last week.
The fears of military action come as expectations of an end to the US stimulus programme have seen investors in recent months repatriate some of the vast sums that have poured into emerging economies, hitting currencies and equities.
Some speculate the US central bank will announce the start of its tapering of the bond-buying programme at the next September 17-18 meeting of the policy-setting Federal Open Market Committee.
Gold rose to $1,399.25 at 0630 GMT Tuesday, up from $1,394.40 late Monday.
In other markets:
Taipei fell 74.13 points, or 0.94%, to 7 820.84.
Hon Hai fell 1.6% to Tw$80.0 while TSMC was 1.24% lower at Tw$95.6.
Wellington edged down 3.64 points or 0.08% to 4 542.03, with Ryman Healthcare off 0.59% at NZ$6.79 and Trade Me slipping 1.56%.
