Asian stocks drop to June low as U.S. OKs Iraq air strike
Nikon Corp. slumped 9.3 percent in Tokyo after the camera maker reduced its full-year profit forecast. Taiyo Yuden Co. plunged 9.7 percent as the Japanese maker of electronic components cut its first-half net-income target and posted a quarterly loss. Neptune Orient Lines Ltd. fell 1.6 percent in Singapore after the cargo carrier posted a wider second-quarter net loss, Bloomberg reports. The MSCI Asia Pacific Index (MXAP) fell 1.4 percent to 144.04 as of 11:22 a.m. in Hong Kong, on course for a 2.5 percent loss this week and the lowest close since June 18. President Obama said he has authorized air strikes to prevent genocide in Iraq. U.S. troops will not be returning to Iraq, he said. The announcement heightened geopolitical risks as Russia retaliated against U.S. and European sanctions by banning some western food imports, with concern that President Vladimir Putin could ratchet up tensions by invading Ukraine. "U.S. air strikes in Iraq could stir up more tensions in the region," Desmond Chua, a strategist at CMC Markets in Singapore. "The geopolitical situation seems to be getting rougher every day. Given these high-risk events, investors should probably stay on the sidelines." Futures on the Standard & Poor's 500 Index fell 0.5 percent today. The measure dropped 0.6 percent yesterday and the Dow Jones Industrial Average slid to the lowest level since April as the Ukraine conflict offset better-than-estimated earnings and a drop in American jobless claims.
