Yahoo Finance Asian Markets Mixed as Investors Assess Uncertainty Over Turkey Crisis
Investing.com - Asian markets were mixed in morning trade on Tuesday as investors continued to digest the impact of the economic uncertainty in Turkey.
Japan’s Nikkei 225 outperformed its regional peers and traded 1.4% higher by 9:41PM ET (01:41 GMT), as the yen gave up some of its recent gains amid safe haven demand on uncertainty in Turkey.
China’s Shanghai Composite and the SZSE Component both slipped 0.4%, while Hong Kong’s Hang Seng Index also fell 0.6%.
Taiwanese contract manufacturer Foxconn Technology Co Ltd (TW:2354) received some focus after reporting worse-than-expected second-quarter earnings. Net profit came in at 14.49 billion Taiwan dollars, according to a statement, compared to an average estimate of T$21.94 billion.
Elsewhere, South Korea’s KOSPI edged 0.1% higher as LG Electronics Inc (KS:066570) retreated 3.4%. Down under, Australia’s S&P/ASX 200 gained 0.7%.
Turkey’s lira took center stage again on Tuesday after the currency pared some of its recent losses after the Turkish central bank moved to calm market nerves. The currency slumped over 20% in four trading days.
"The efforts announced by the Turkish central bank to stabilize the TRY (Turkish lira) appear to have assisted. The TRY has not endured further depreciation in overnight trade, but it has not substantially declined either," Richard Grace, chief currency strategist at Commonwealth Bank of Australia, said in a morning note.
Some analysts believed while the uncertainty in Turkey may continue, its correlation to the rest of the asset class may decline soon.
“It’s a large local difficulty, but so far the contagion has been relatively limited,” Ray Attrill, head of foreign-exchange strategy at National Australia Bank Ltd, told Bloomberg in an interview on Tuesday. “We’re seeing a little bit of signs of contagion within the euro zone, within the spreads of those government bonds in countries where the banking sector appears to have the biggest exposure as far as Turkey is concerned. You’d have to say that Turkey is relatively contained.”
Looking ahead, China is due to release industrial production, fixed-asset investment and retail sales data later in the morning.
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