Asian stocks sink as Turkey fears hurt emerging markets

A woman walks past a bank electronic board showing the Hong Kong share index outside a Hong Kong local bank Monday, Aug. 13, 2018. Asian stock prices sank Monday as Turkey’s financial turmoil fueled fears contagion might spread to other emerging markets. (AP Photo/Vincent Yu)
A man walks past a bank electronic board showing the Hong Kong share index outside a Hong Kong local bank Monday, Aug. 13, 2018. Asian stock prices sank Monday as Turkey’s financial turmoil fueled fears contagion might spread to other emerging markets. (AP Photo/Vincent Yu)
A woman walks past a bank electronic board showing the Hong Kong share index outside a Hong Kong local bank Monday, Aug. 13, 2018. Asian stock prices sank Monday as Turkey’s financial turmoil fueled fears contagion might spread to other emerging markets. (AP Photo/Vincent Yu)

BEIJING — Asian stock prices sank Monday as Turkey's financial turmoil fueled fears contagion might spread to other emerging markets.

KEEPING SCORE: The Shanghai Composite Index lost 1.7 percent to 2,746.90 and Tokyo's Nikkei 225 retreated 1.9 percent to 21,885.45. Hong Kong's Hang Seng shed 1.8 percent to 27,850.55 and Seoul's Kospi retreated 1.6 percent to 2,249.65. Sydney's S&P-ASX 200 declined 0.5 percent to 6,246.80. Benchmarks in New Zealand, Singapore, Bangkok and Kuala Lumpur also fell.

WALL STREET: Stock prices slid as investors responded to Turkey jitters by settling equities and buying government bonds. The dollar strengthened while major exporters including technology, basic materials and industrial companies sank. The Standard & Poor's 500 index slide 0.7 percent to 2,833.28, ending a five-week winning streak. The Nasdaq composite broke an eight-day rising trend and sank 0.7 percent to 7,839.11.

TURKISH TURMOIL: Investors are uneasy over whether Turkey's government can cope with a plunging currency, a diplomatic spat with Washington and other problems. President Recep Tayyip Erdogan has accumulated more and more control over Turkey's financial system and central bank. U.S. President Donald Trump said Friday he will authorize higher tariffs on Turkish steel and aluminum. That came after Turkey put an American pastor on trial on spying charges. Erdogan promised Sunday his government will take unspecified "necessary actions" to calm markets.

ANALYST'S TAKE: "Turkey's financial crisis has taken center stage, displacing trade wars as the immediate concern," said Eugene Leow of DBS Group in a report. Worries are building that "this may lead to contagion" across emerging markets, said Leow. "We fail to see how the crisis can be resolved without external support," but an International Monetary Fund support package will be difficult "given Turkey's current political situation."

ENERGY: Benchmark U.S. crude fell 5 cents to $67.58 per barrel in electronic trading on the New York Mercantile Exchange. The contract closed at $67.63 on Friday. Brent crude lost 18 cents to $72.65 in London. It closed at $72.83 the previous session.

CURRENCIES: The dollar declined to 110.24 yen from Friday's 110.93. The euro fell to $1.1385 from $1.1411.

People also read these

China dairy firm says it can't contact exec after...

Mar 28, 2017

A Chinese dairy company whose stock plunged last week, wiping billions off its market value, has...

Asian stocks mixed as investors weigh US data,...

Mar 29, 2017

Asian stock are uneven as investors weighed strong U.S. economic reports against uncertainty as...

World stocks mixed; Asia drops on Chinese...

Mar 30, 2017

World stocks were mixed Thursday, with Asian indexes falling as Chinese authorities tightened...

Asian stocks mixed after Wall Street rise

May 16, 2017

Chinese stocks have fallen on weaker economic data and other Asian markets are little-changed after...

Asian stocks slide as Trump's mounting woes...

May 18, 2017

Asian stocks slide after big Wall Street losses as Trump's mounting political woes rattle investors

About Us

Biz Daily Online gives a complete understanding of the world of business to you. Get today’s business news and learn about the trends that are affecting every business here.

Contact us: sales[at]bizdailyonline.com

Subscribe Now!