Aust market lower after US Syria strike

missile strike

Australia’s share market and some of the key Asian exchanges have fallen after news that the United States has launched missile strikes on a Syrian government air base but brokers say the impact is likely to be short-lived.

IG chief market strategist Chris Weston said news of the US strike was affecting global equity and foreign exchange markets generally, and pushing investors towards safe haven assets like gold.

Global oil prices also lifted despite Syria only producing one per cent of global oil output.

At 1415 AEST the benchmark S&P/ASX200 was 0.17 per cent lower at 5,846.6 points.

The Australian dollar was worth 75.33 US cents, down from 75.48 US cents on Thursday.

Mr Weston said the impact on the Australian market had not been huge.

“There’s no panic. There’s a lot of people out there saying that we’ve seen these sort of events take place before,” Mr Weston said.

“They tend to have a very short-lasting impact on market psychology.”

Mr Weston said market participants were now asking if there will be a response from Syria’s Assad regime and what the relationship between President Assad and Russia be like given that the US forewarned Russia of the strike.

Equites markets in Korea, Singapore and Hong Kong were lower as markets digested the news in afternoon trading but Japan was slightly higher, recovering from an early-session dip.

Gold and oil prices rose and the Australian dollar fell against the greenback.

The Australian stock market, which was stronger in morning trade, turned downward on news of the strike involving 50 to 60 missiles launched from a two US warships in the Mediterranean.

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