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Asian markets mixed with Wall Street are nervous about Turkey



Most Asian stock markets were patchy on Tuesday following Wall Street's decline as the Turkish central bank struggled to contain a currency crisis that raised fears over other emerging markets. [1965900] NOTE: The Shanghai Composite Index fell 0.5 percent to 2,771.81 and Hong Kong's Hang Seng lost 0.9 percent to 27,686.99. Tokyo's Nikkei 225 gained 1.8 percent to 22,255.98 and Seoul Kospi gained 0.4 percent to 2,257.65. Sydney's S & P ASX 200 gained 0.8 percent to 6,298.30. Benchmarks in Taiwan and New Zealand improved, while Singapore, Indonesia and Thailand declined.

WALL STREET: A stronger dollar hurt exporters whose goods become more expensive abroad. Most retailers were down, but Amazon rose 0.5 percent. The Standard & Poor's 500 Index lost 0.4 percent to 2,821

.93. The Dow Jones Industrial Average fell 0.5 percent to 25,187.70. The Nasdaq alliance fell 0.2 percent to 7,819.71.

TURKISH TURMOIL: The Turkish central bank announced measures to support its banks, but the country's lira and stock market continued to slide. The lira has faltered as investors wonder if President Recep Tayyip Erdogan's government can handle problems such as the flagging currency and a diplomatic dispute with Washington, which has led to higher US tariffs. Erdogan has ruled out a rate hike that may slow economic growth, but analysts say higher interest rates are urgently needed to stabilize the local currency.

CONTAGION FEARS: Emerging markets are out of favor due to problems in Turkey and Argentina. Investors worry The turbulence in Turkey could affect the global banking system and the economy. The Argentine peso sank under investor caution and a corruption scandal with former government officials to an all-time low. Rising US interest rates are also pulling money out of emerging markets in search of higher yields.

ANALYST'S: Asian markets were "relatively more resilient" to Turkey than South Africa and Latin America, said Philip Wee and Radikha Rao of DBS Group in a report. But they said that the US tariff increase on Turkish steel in a period of "significant stress" is a message to emerging markets that would not expect Washington to "calm down" their markets in difficult times. "Expect more stress if the Fed continues to oversee the turbulence in emerging markets (as it did in May) and stick to a gradual rate hike path," said CHRISTIAN COOLING: Factory output, consumer spending and retail sales were weaker in July than they were expected and contributed to signs of economic slowdown. Factory production rose 6 percent year-on-year, below the previous month but below expectations. Retail sales increased 8.8 percent, compared to 9 percent in June. Investment in factories and other property, plant and equipment increased by 5.5 percent in the first seven months of the year from 5.7 percent a year to June. Forecasters have expected economic growth to slow as regulators tightened lending controls last year to stem rising debt.

ENERGY: Benchmark US crude rose 32 cents in electronic trading on the New York Mercantile Exchange to $ 67.52 a barrel. The contract closed on Monday at $ 67.20. Brent crude, used to value international oils, has raised 32 cents to $ 72.93 a barrel in London. It closed the previous session at $ 72.61.

CURRENCY: The dollar gained 110.73 yen from Monday to 110.79 yen. The euro slipped from $ 1.1411 to $ 1,11410.


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