With Korea and Syria In Spotlight, Stocks and Euro Fell – Asia Market Wrap

Financial markets began the week cautiously, following a weekend of global uncertainty ranging from Syria to South Korea, which clouded the investment picture.

An Asian equities index sank 0.3% after Korea’s benchmark dropped as high as 2.6% as the country’s political situation worsened. Chinese stocks also fell as statistics suggested that the world’s second-largest economy’s demand is recovering slowly. US futures edged lower.

The Dollar rose, while the Euro and Turkish Lira fell as a risk-off move followed the demise of President Bashar al-Assad’s regime.

The poor tone comes as investors prepare for a week packed with central bank announcements, a critical Chinese policy meeting, and US inflation data. Political uncertainty is high on investors’ minds, with Korea facing a prolonged political standstill as MPs press President Yoon Suk Yeol to resign. In the Middle East, Assad’s demise has left a power vacuum, disturbing an already volatile area.

In China, consumer inflation fell last month, indicating that government initiatives have not been sufficient to promote demand. It may enhance anticipation for greater fiscal help from the Central Economic Work Conference, which begins on Wednesday.