Asian stocks started lower Monday as the fallout from Friday’s plunge in Turkish asset prices made its way across the Pacific. European and U.S. stocks fell to end the week as worries built that Turkey’s troubles could prove contagious.

The Turkish lira USDTRY, +0.5929% put in fresh lows against the U.S. dollar early Monday, down more than 8% in Asian trading hours, after dropping 14% on Friday.

Read: Turkish lira hits fresh low as Erdogan’s currency crisis echoes through stock markets

The Nikkei NIK, +0.35% was down 1.6% to lead the early declines, with the yen USDJPY, +0.05% up as much as 0.5% against other major currencies. Exporter stocks were particularly hard hit, with Toyota 7203, +1.28% and Canon 7751, +1.74% each down more than 1.5%.

Chinese stocks fell more than 1% in early trading. Property stocks pulled back after banks denied a mortgage-rates cut, and construction and metal names were muted. The Shanghai Composite SHCOMP, -0.12% fell 1.6% while the Shenzhen Composite 399106, -0.11% was off 1.2%.

Hong Kong’s Hang Seng Index HSI, +0.01% tumbled 1.7%, with steep declines across all sectors. Tencent 700, -0.64% fell 2.4% while China Construction Bank 939, +0.00% dropped 1.5%

Korea’s Kospi 180721, +0.62% was off 1.4%, with big caps including Samsung 005930, +0.21% and Posco 005490, +2.53% falling at least 1%. In New Zealand, where trading ended Friday just as the lira’s drop was beginning, the NZX 50 NZ50GR, -0.54% was off 0.4% to reverse some of its end-of-week strength. Australia’s S&P/ASX 200 XJO, -0.51% was down 0.5% with losses held in check by the Aussie dollar’s weakness.

Benchmarks in Taiwan XX:Y9999 , Singapore STI, +0.30% and Malaysia FBMKLCI, -0.54% were all off more than 1%.</s>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. less

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 ... more

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. less

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 ... more

BEIJING (AP) — 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.</s>(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 ...

(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 t...

(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 t...

BEIJING (AP) - Asian stock prices sank Monday as Turkey's financial turmoil fueled fears of contagion in other emerging markets.

KEEPING SCORE: The Shanghai Composite Index fell 1.6 percent to 2,750.40 and Tokyo's Nikkei 225 tumbled 2.0 percent to 21,857.43. Hong Kong's Hang Seng lost 1.6 percent to 27,907.18 and Seoul's Kospi retreated 1.5 percent to 2,248.45. Sydney's S&P-ASX 200 shed 0.4 percent to 6,252.20 and India's Sensex was down 0.3 percent at 33,729.73. Benchmarks in New Zealand, Taiwan and Southeast Asia also declined.

WALL STREET: Investors responded to Turkey jitters by selling equities and buying government bonds. The dollar strengthened as traders dumped Turkish lira. Major exporters including technology, basic materials and industrial companies sank. The Standard & Poor's 500 index slid 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 question whether President Recep Tayyip Erdogan's government can cope with a plunging currency, a diplomatic spat with Washington and other problems. 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 24 cents to $67.39 per barrel in electronic trading on the New York Mercantile Exchange. The contract closed at $67.63 on Friday. Brent crude lost 28 cents to $72.53 in London. It closed at $72.83 the previous session.

CURRENCIES: The dollar declined to 110.22 yen from Friday's 110.93. The euro fell to $1.1373 from $1.1411.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.</s>BEIJING (AP) - 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.</s>BEIJING — Asian stock prices sank Monday as Turkey’s financial turmoil fueled fears of contagion in other emerging markets.

KEEPING SCORE: The Shanghai Composite Index fell 1.6 percent to 2,750.40 and Tokyo’s Nikkei 225 tumbled 2.0 percent to 21,857.43. Hong Kong’s Hang Seng lost 1.6 percent to 27,907.18 and Seoul’s Kospi retreated 1.5 percent to 2,248.45. Sydney’s S&P-ASX 200 shed 0.4 percent to 6,252.20 and India’s Sensex was down 0.3 percent at 33,729.73. Benchmarks in New Zealand, Taiwan and Southeast Asia also declined.

WALL STREET: Investors responded to Turkey jitters by selling equities and buying government bonds. The dollar strengthened as traders dumped Turkish lira. Major exporters including technology, basic materials and industrial companies sank. The Standard & Poor’s 500 index slid 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 question whether President Recep Tayyip Erdogan’s government can cope with a plunging currency, a diplomatic spat with Washington and other problems. 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 24 cents to $67.39 per barrel in electronic trading on the New York Mercantile Exchange. The contract closed at $67.63 on Friday. Brent crude lost 28 cents to $72.53 in London. It closed at $72.83 the previous session.

CURRENCIES: The dollar declined to 110.22 yen from Friday’s 110.93. The euro fell to $1.1373 from $1.1411.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.</s>(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 ...

BEIJING (AP) - Global stock prices sank Monday as Turkey's financial turmoil fueled fears of contagion in other emerging markets.

KEEPING SCORE: Germany's DAX declined 0.6 percent to 12,346 and London's FTSE 100 retreated 0.5 percent to 7,625. France's CAC 40 lost 0.2 percent to 5,401. On Wall Street, futures for the Standard & Poor's 500 index and Dow Jones industrial averages were down 0.3 percent.

ASIA'S DAY: The Shanghai Composite Index fell 0.3 percent to 2,785.87 and Tokyo's Nikkei 225 lost 2 percent to 21,857.43. Hong Kong's Hang Seng retreated 1.5 percent to 27,936.57 and Seoul's Kospi was 1.5 percent lower at 2,248.45. Sydney's S&P-ASX 200 shed 0.4 percent to 6,252.20 and India's Sensex was off 0.2 percent at 33,755.14. Benchmarks in New Zealand, Taiwan and Southeast Asia also declined.

TURKISH TURMOIL: Investors question whether President Recep Tayyip Erdogan's government can cope with a plunging currency, a diplomatic spat with Washington and other economic problems. Erdogan has accumulated more and more control over Turkey's financial system and does not want the central bank to raise interest rates - though independent economists say that's needed to support the currency. U.S. President Donald Trump said Friday he will authorize higher tariffs on Turkish steel and aluminum. Erdogan has remained defiant, making investors increasingly nervous.

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."

CURRENCIES: Turkey's currency fell another 8 percent on Monday, bringing its losses this year to 46 percent. Other developing countries have seen their currencies hit amid the questions over Turkey. The South African rand was down almost 3 percent. The dollar, which had risen Friday as investors bought as a safe haven, edged back to 110.34 yen from Friday's 110.93. The euro fell to $1.1382 from $1.1411.

ENERGY: Benchmark U.S. crude fell 29 cents to $67.34 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude lost 7 cents to $72.74 in London. It closed at $72.83 the previous session.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.</s>SYDNEY, Aug 13 (Reuters) - Emerging market currencies suffered a renewed bout of selling on Monday while Asian shares were a sea of red amid a deepening crisis for Turkey's lira, which plunged to all-time lows on concerns over a rift with the United States.

Investors fear the lira's sell-off could have a ripple effect in global financial markets with the euro, the South African rand and Mexico's peso already dented by Turkey's crisis.

The lira hit a record low around $7.2400 against the dollar in early Asian trade. The South African rand skidded to a level not seen since mid-2016 and Russia's rouble slumped to a near 2-1/2 year trough.

The Indian rupee slid to an all-time trough, while the Indonesian rupiah hit its lowest in almost three years, prompting intervention from the country's central bank.

The wave of selling was triggered on Friday when President Donald Trump announced higher U.S. sanctions on Turkish steel and aluminium exports, causing a spike in EM FX volatility gauges. Russian markets also felt the heat last week after a surprise sanctions move by Washington.

"It is premature to stipulate how long and how much the impact will expand," said Kim Doo-un, Seoul-based economist at KB Securities.

"I expect emerging countries, which have thorny relationship with Trump administration, could be the first ones (to) suffer from capital outflows. A strong dollar will cause some dissonance and the trend will continue throughout this week."

Safe haven currencies and bonds rallied. The dollar index was near a one-year top of 96.505 while the Japanese yen climbed for a second straight day to a 1-1/2 month top.

Yet, the sell-off is not limited to emerging markets: the euro stumbled to more than one-year lows on worries about European bank exposure to Turkey.

Spain's BBVA, Italy's UniCredit and France's BNP Paribas have some of the largest operations in Turkey among the euro zone banks.

The fear of a contagion reverberated across markets with every Asian share index in the red on Monday.

At 0410 GMT, MSCI's broadest index of Asia-Pacific shares outside Japan had fallen 1.7 percent while the MSCI International EM index was down 2.0 percent.

Still, some analysts see the current turmoil as an opportunity to pick up cheap assets.

"Asia should not see any contagion effect fundamentally due to the ongoing crisis in Turkey as the region does not have a meaningful exposure to the country," analysts at Singapore's DBS said in a note.

"We would see any meaningful correction in bond prices on the back of the Turkey developments alone, as a buying opportunity."</s>SYDNEY, Aug 13 (Reuters) - Emerging market currencies sold off heavily on Monday and Asian stocks were knocked lower as Turkey’s lira plunged to all-time lows on concerns over its diplomatic rift with the United States and the risk of capital flight.

Investors fear the lira’s sell-off could have a ripple effect in global financial markets with the euro, the South African rand and Mexico’s peso already dented by Turkey’s crisis.

The lira pared some of its losses after Turkey’s central bank said it had lowered reserve requirement ratios for banks. It also said it would provide whatever liquidity banks needed and take all necessary measures to maintain financial stability.

However, the lira was still down more than 9 percent on the day at 6.9743 per dollar and within spitting distance of a record low around 7.2400 hit it early Asian trade. This time last month the lira was at 4.8450.

The South African rand skidded to a level not seen since mid-2016 and Russia’s rouble slumped to a near 2-1/2 year trough.

The Indian rupee slid to an all-time trough, while the Indonesian rupiah hit its lowest in almost three years, prompting intervention from the country’s central bank.

The wave of selling was triggered on Friday when U.S. President Donald Trump announced tougher sanctions on Turkish steel and aluminium exports, causing a spike in EM foreign exchange volatility gauges. Russian markets also felt the heat last week after surprise sanctions by Washington.

“It is premature to conclude how long and how much the impact will expand,” said Kim Doo-un, Seoul-based economist at KB Securities.

“I expect emerging countries, which have a thorny relationship with Trump administration, could be the first ones (to) suffer from capital outflows. A strong dollar will cause some dissonance and the trend will continue throughout this week.”

Safe haven currencies and bonds rallied. The dollar index was near a one-year top of 96.505 while the Japanese yen climbed for a second straight day to a 1-1/2 month top.

However, the sell-off is not limited to emerging markets: the euro stumbled to more than one-year lows on worries about European bank exposure to Turkey.

Spain’s BBVA, Italy’s UniCredit and France’s BNP Paribas have some of the largest operations in Turkey among the euro zone banks.

The fear of contagion reverberated across markets with every Asian share index in the red on Monday.

At 0410 GMT, MSCI’s broadest index of Asia-Pacific shares outside Japan had fallen 1.7 percent while the MSCI International EM index was down 2.0 percent.

Still, some analysts expect Asia to ride out the storm thanks to ample foreign exchange reserves and prudent fiscal and monetary policies, while others see the current turmoil as an opportunity to pick up cheap assets.

“Asia should not see any contagion effect fundamentally due to the ongoing crisis in Turkey as the region does not have a meaningful exposure to the country,” analysts at Singapore’s DBS said in a note.

“We would see any meaningful correction in bond prices on the back of the Turkey developments alone, as a buying opportunity.”</s>BEIJING (AP) — Global stock prices sank Monday as Turkey's financial turmoil fueled fears of contagion in other emerging markets.

KEEPING SCORE: In early trading, Germany's DAX declined 0.5 percent to 12,358.17 and London's FTSE 100 retreated 0.5 percent to 7,630.63. France's CAC 40 lost 0.1 percent to 5,406.76. On Friday, the DAX fell 2 percent, the CAC 40 lost 1.6 percent and the FTSE was down 1 percent. On Wall Street, futures for the Standard & Poor's 500 index and Dow Jones industrial averages were down 0.3 percent.

ASIA'S DAY: The Shanghai Composite Index fell 0.3 percent to 2,785.87 and Tokyo's Nikkei 225 lost 2 percent to 21,857.43. Hong Kong's Hang Seng retreated 1.5 percent to 27,936.57 and Seoul's Kospi was 1.5 percent lower at 2,248.45. Sydney's S&P-ASX 200 shed 0.4 percent to 6,252.20 and India's Sensex was off 0.2 percent at 33,755.14. Benchmarks in New Zealand, Taiwan and Southeast Asia also declined.

WALL STREET: Investors responded to Turkey jitters by selling equities and buying government bonds. The dollar strengthened as traders dumped Turkish lira. Major exporters including technology, basic materials and industrial companies sank. The Standard & Poor's 500 index slid 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 question whether President Recep Tayyip Erdogan's government can cope with a plunging currency, a diplomatic spat with Washington and other problems. 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 8 cents to $67.55 per barrel in electronic trading on the New York Mercantile Exchange. The contract closed at $67.63 on Friday. Brent crude lost 4 cents to $72.79 in London. It closed at $72.83 the previous session.

CURRENCIES: The dollar declined to 110.34 yen from Friday's 110.93. The euro fell to $1.1382 from $1.1411.</s>* Turkish lira hits record low of 7.24 to the dollar overnight

* MSCI EM stock index falls 1.8%, close to more than 1 year low

LONDON/SYDNEY, Aug 13 (Reuters) - The crisis engulfing Turkish markets over its diplomatic rift with the United States sent tremors through emerging markets on Monday, knocking some main currencies to multi-year lows and weighing heavily on equities.

Investors fear the selloff in the lira, which hit a fresh record low overnight, could have a ripple effect in global financial markets, with the euro, South Africa’s rand and Mexico’s peso already dented by Turkey’s crisis.

The lira pared some of its losses against the dollar after the central bank said it had lowered reserve requirement ratios for banks as well as pledged to provide whatever liquidity banks needed and to take all necessary measures to maintain financial stability.

However, the Turkish currency was still down more than 6 percent on the day and within spitting distance of a record low around 7.24 hit it early Asian trade. The lira has weakened nearly 45 percent since the start of the year.

Turkey’s local bond markets saw yields spike above 21 percent, while dollar-denominated bonds issued by the government and banks suffered a steep selloff. Istanbul’s stock exchange halted trading in three of the country’s leading banks after they tumbled more than 11 percent.

“It’s a textbook crisis – for many years everybody said Turkey was a weak country due to its large external debt and current account deficit,” said Guillaume Tresca, senior emerging markets strategist at Credit Agricole.

“There is nothing surprising other than that the central bank is not really reacting. They issued this new plan but there is no tightening of financial conditions – they are completely behind the curve.”

Other main currencies were caught in the vortex. South Africa’s rand skidded to levels not seen since mid-2016 and Russia’s rouble slumped to a near 2-1/2 year trough.

The Indian rupee slid to an all-time trough, while the Indonesian rupiah hitting a near three-year low prompted the central bank to intervene. China’s yuan weakened 0.5 percent - its steepest daily decline in nearly four weeks.

The wave of selling was triggered on Friday when U.S. President Donald Trump announced tougher sanctions on Turkish steel and aluminium exports, causing a spike in emerging foreign exchange volatility gauges.

Adding to the emerging market woes, Washington imposed surprise sanctions last week against Russia.

Some safe haven currencies and bonds rallied. The dollar index held near its one-year top of 96.522, while the Japanese yen climbed for a second straight day to a 1-1/2 month peak.

However, the sell-off was not limited to emerging markets: the euro stumbled to more than one-year lows on worries about European bank exposure to Turkey.

Spain’s BBVA, Italy’s UniCredit and France’s BNP Paribas have some of the largest operations in Turkey among the euro zone banks.

The fear of contagion reverberated across equity markets.

MSCI’s broadest emerging markets index slipped 1.8 percent and traded within eyesight of a one-year low hit in June. The benchmark was pulled lower by hefty falls in Asian heavyweights South Korea and Hong Kong, where indexes fell around 1.5 percent, while Taiwan tumbled more than 2 percent.
Asian stock prices sink as Turkey’s financial turmoil fuels fears contagion might spread to other emerging markets.