HONG KONG, Aug 27 — Asian markets were mostly lower today, tracking losses in Wall Street amid 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.

Hong Kong stocks fell 0.24 per cent, while Sydney fell 0.08 per cent with sentiment hurt also by poor Australian earnings results. Surfwear retailer Billabong International plunged 10.6 per cent while Seven Group dived 9.6 per cent.

Tokyo stocks were flat by the morning break as bargain-hunting helped erase early losses.

“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.

Shanghai shares were also flat in morning trade, slipping 0.01 per cent, as the market took a breather following a rise of nearly two per cent the previous session, dealers said.

Singapore was down 0.70 per cent and Taiwan fell 0.29 per cent. Seoul gained 0.34 per cent.

Oil prices rose over fears of renewed instability in the Middle East. New York’s main contract, West Texas Intermediate for delivery in October, rose 57 cents to US$106.49 (RM355), and Brent North Sea crude for October added 45 cents to US$111.18.

Kelly Teoh, market strategist at IG Markets Singapore, said investors were anticipating some kind of US action against Syria.

“Over the last couple of days we have seen footage (of the alleged chemical attack) and it’s really heinous,” she told AFP. “It depends on whether the world will get together and stop this. Investors are digesting that.”

The dollar fell to 98.14 against the yen compared with 98.51 in the US late Monday. The euro bought US$1.3371 and 131.46 yen, compared to US$1.3369 and 131.68 yen.

US stocks closed lower Monday following Kerry’s comments with the Dow Jones index shedding 64.05 points (0.43 per cent) to 14,946.46.

Stocks were also under pressure after the Commerce Department reported new orders for US durable manufactured goods plunged 7.3 per cent in July, much sharper than the expected drop of 5.0 per cent.

Gold rose to US$1,397.40 at 0300 GMT Tuesday, up from US$1,394.40 late yesterday. – AFP