Syria Strikes Likely to Send Yen Higher, Stocks Lower in Tokyo

April 15, 2018

Tokyo- U.S.-led airstrikes against Syria on Friday are expected to send the yen higher and Japanese stocks lower in Tokyo trading on Monday, analysts and economists said.

"Investors will become more risk-averse, and a higher yen and lower stocks are inevitable," said Toshihiro Nagahama, chief economist at the Dai-ichi Life Research Institute.

The yen rose and Japanese stocks fell following a U.S. airstrike on Syria in April last year.

But some think that any Tokyo market reaction may not be large because Friday's strikes were limited.

"Investors may take the situation calmly and a drop in stocks may be small," said Makoto Onoda, analyst at eWarrant Japan Securities K.K.

Some said that the benchmark Nikkei stock average is unlikely to drop far below 21,000, compared with Friday's closing of 21,778.74. They also said the dollar is not expected to fall far below 106 yen after staying above 107 yen on Friday.

Analysts and economists are concerned about a possible further escalation in tensions over Syria and the Middle East. Jiji Press