Obama’s Announcement of Air Strikes Badly Impacts Asian Markets

Obama’s Announcement of Air Strikes Badly Impacts Asian Markets

US President Barack Obama's announcement that he has authorized air strikes against Islamic militants in northern Iraq has badly impacted the Asian markets.

After seeing the impact of the announcement on markets from Japan to Australia, investors are concerned about the growth. Japan's benchmark Nikkei index witnessed a decline by around 3%, which was a two-month low.

The S&P ASX 200 index fell by 1.3% to close at 5,435 points. Stocks in Australia fell to a five-week low. The euro was found to be lower in comparison to Japanese currency at 136.04 yen.

But there are markets that did not get affected by the news. Owing to strong domestic factors, China's growth remains undeterred.

In fact, its latest trade data unveiled a 14.5% rise in exports for July. After seeing the exports growth, experts are hoping that Chinese economy will remain on growth track. For July, China's trade surplus was $47.3bn and the benchmark Shanghai Composite index increased by 0.2% to 2,193 points.

In the announcement, Mr. Obama clearly said that air strikes would be used to prevent the killings of the religious minorities and also, if the militants threaten the US interests. Till now, no air strikes have been made.

Australia's Prime Minister Tony Abbot affirmed that stronger sanctions would be issued against Russia. Earlier this week, the Russian government has banned the import of food products from the west including America, European Union and Australia. The move is considered to be revenge against the sanctions issued to Russia owing to the crisis in Ukraine.

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