💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadExplore for free

REFILE-GLOBAL MARKETS-Asian stocks weaken as Turkey worries weigh, dollar stands tall

Published 2018-08-14, 09:10 p/m
REFILE-GLOBAL MARKETS-Asian stocks weaken as Turkey worries weigh, dollar stands tall
EUR/USD
-
USD/JPY
-
AXJO
-
JP225
-
DX
-
LCO
-
CL
-
US10YT=X
-
KS11
-
MIAPJ0000PUS
-
DXY
-

* MSCI Asia-Pacific index down 0.15 pct, Nikkei drops 0.15 pct

* Turkish woes linger; safe-haven dollar near 13-month high

* Crude oil sags on stronger dollar

By Shinichi Saoshiro

TOKYO, Aug 15 (Reuters) - Asian stocks sagged on Wednesday, failing to track Wall Street's gains and with the dollar near a 13-month high as concerns about Turkey's financial crisis weighed on investor appetite, despite the lira's move away from an all-time low.

The lira TRYTOM=D3 --which plummeted to a record low of 7.24 to the dollar at the week's start, rattling global markets--stood little changed at 6.375 after rebounding more than 8 percent overnight.

Wall Street's three main indexes rose on Tuesday as the lira's climb eased fears of broader financial contagion for now. A string of robust earnings also boosted U.S. shares. .N

But the rise in U.S. shares did not carry through to Asia, with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipping 0.15 percent after bouncing 0.4 percent the previous day when the lira showed signs of stabilising.

Australian stocks .AXJO lost 0.15 percent and Japan's Nikkei .N225 slipped 0.15 percent after rallying more than 2 percent on Tuesday. South Korean markets .KS11 were closed for a public holiday.

"The equity markets are waiting for the next steps after gaining strongly yesterday. The drop by the Turkish lira may have stopped, but the country is yet to tackle the fundamental problems facing it, and this has kept market sentiment subdued," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo.

Underscoring lingering concerns towards the crisis in Turkey, the dollar hovered near a 13-month peak against a basket of currencies, seen to be supported by its safe-haven status.

Turkish President Tayyip Erdogan said on Tuesday that Ankara would boycott electronic products from the United States, retaliating in a row with Washington that has helped drive the lira to record lows. dollar index, which measures the greenback's strength against a group of six major currencies stood at 96.696 after climbing to 96.794 .DXY , its highest since late June 2017.

The strength of the U.S. currency was compounded by the euro's fall, which has been dogged by potential risks to European banks from the financial turmoil in Turkey.

The single currency stood little changed at $1.1347 EUR= , not far from a 13-month trough of $1.1330 brushed overnight. The euro also struggled near a 13-month low versus the Swiss franc EURCHF= , a traditional safe-haven currency.

Adding to overnight gains, the dollar last traded up 0.1 percent at 111.240 yen JPY= .

Government bond yields, meanwhile, nudged higher amid the ebb in risk aversion.

The benchmark 10-year Treasury note yield US10YT=RR stood around 2.90 percent, having bounced from a three-week low of 2.848 percent set on Monday.

British gilt and French bond yields have also pulled away from multi-week lows.

In commodities, crude oil prices felt pressure from a stronger dollar.

Brent crude futures LCOc1 dipped 0.5 percent to $72.12 a barrel and U.S. crude CLc1 shed 0.4 percent to $66.76 a barrel. (Editing by Sam Holmes)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.