Istanbul
The Turkish lira hit a record low amid growing concerns around clashes between Armenian and Azeri forces, while emerging market stocks tracked gains in Asia as data showed a jump in Chinese industrial profits.
The lira tumbled 1.5 percent to a low of 7.79 against the dollar, while the Russian rouble eased for the fourth straight session. Azerbaijan and Armenia sovereign dollar-denominated bonds fell as much as 3 to 4 cents.
“Fears are that Turkey gets dragged into another regional conflict,” said Timothy Ash, EM sovereign strategist at BlueBay Asset Management, referring to the fighting over Nagorno-Karabakh, an enclave in Azerbaijan controlled by ethnic Armenians. The lira, already among the worst performing European currencies this year.
