Turkish stocks jumped to a two- month high and bonds rose as the central bank said it may pay interest on required reserves and concern over the potential leaking of an alleged recording of illicit state behavior eased.
Emerging-market stocks advanced, led by the biggest rally in Turkey’s benchmark index in more than three months, amid speculation political tension in the country may ease. The lira strengthened, while Russia’s ruble declined.
The lira extended its drop to a record low against the dollar and stocks slid after the Turkish central bank’s first unscheduled intevention in more than two years failed to stem the currency’s decline yesterday.
The lira headed for a record low against the dollar as measures taken by the central bank failed to allay concern Turkey’s economy will be hurt if its neighbor Syria is attacked in a U.S.-led military strike. Bonds fell.