In a possible US-led military strike on Wednesday, the Syrian government dithering knocked in Asian markets, Japan's Nikkei index hit a two-month low, and push up oil prices and safe-haven gold to multi-month highs.
Acute "risk off" mode also boosted the yen, posted its biggest rally in more than two months after holding a one-week high against the dollar and the euro more attractive. U.S. dollar against a basket of major currencies, the dollar index. DXY was steady during the week lows.
Washington and its allies stepped up against President Bashar al-Assad's forces last week's chemical weapons attack, was accused of possible military action.
Western officials expect the opposition to Syria within a few days of the strike, U.S. Secretary of Defense Hagel said U.S. forces in the region, "ready to go", if President Obama gave the order.
News Syria overshadowed improving economic indicators, such as the U.S. housing prices rise and German Ifo business survey, hit a 16-month high.
Overnight, the U.S. and European markets since June suffered the worst day, investor nervousness reflected in nearly 12% of the CBOE volatility index jump. Wall Street, the so-called fear index (VIX) of the two-month high. EU N.
: "<Syria issue> that adds a layer of tension tapering the U.S. global trade is to have a very big impact on the emerging markets have a very large impact on the debate," a foreign bank in a senior trader Tokyo said.
Tokyo's Nikkei N225 shares fell 2.4 percent to a two-month low, while the yen roughly steady at $ 97.00 and 129.870 euros climbed more than 1% after overnight.
MSCI indices are widely MIAPJ0000PUS Asia-Pacific shares outside Japan fell 0.5 percent last Wednesday, extending the previous session's 1.2% decline.
Emerging markets have been in the past few weeks, reeling with market expectations, the U.S. Federal Reserve will reduce its $ 8.5 billion bond-buying program as soon as a month in the next month.
Emerging market currencies have been hit hard, the Indian rupee, rupiah and Thai baht (among other things) in the multi-year lows.
Bank Indonesia Board of Directors will meet on Thursday in a surprise move widespread speculation, which will again have to raise interest rates to defend the rapid decline in rupiah, now its lowest since April 2009 level, the highest implied volatility.
Indian rupee hit a record low last Tuesday and the lower house parliament approved a nearly $ 20 billion plan to provide cheap grain to the poor, improve attention deficits after nearly 18 years to release its biggest one-day drop will blow out even further.
32.15 baht each, the lowest level in three years.
In the Middle East geopolitical risks pushing gold and oil prices higher, however.
Brent crude oil futures prices rose 0.7 percent, to six-month high of $ 115.44 a barrel, extending Tuesday's 3.3% surge - they are in the last 10 months the largest single-day percentage gain.



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