Asian stocks hit one-year low amid Turkey woes, bearish China equities

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Following Trump's move to increase duties on steel and aluminum from Turkey, Turkey's President Recep Tayyip Erdogan said this week his country will boycott USA electronic goods, including the iPhone.

Stocks were weaker in most major Asian markets Wednesday, with Turkey's financial crisis showing little sign of abating as Ankara hiked tariffs on several USA goods in a tit-for-tat move.

He suggested Turks would buy locally-made or Korean devices instead.

Addressing a conference of his ruling party faithful in the capital, Recep Tayyip Erdogan added fuel to the spat with the us, even as local business groups called on his government to settle it.

The United States has imposed sanctions on two Turkish government ministers over the trial on terrorism charges of USA evangelical pastor Andrew Brunson in Turkey, and last week Washington raised tariffs on Turkish metal exports.

Turkey on Wednesday doubled tariffs on some US imports including alcohol, cars and tobacco in retaliation for USA moves, but the lira rallied further.

The lira posted gains on forex markets for the first time after days of losses, giving the currency much-needed respite.

"Believe me, if we divert our money to foreign currency. then we will be in the position of having surrendered to the devil", Erdogan said.

Meanwhile, most global stock markets steadied on Tuesday as worries over Turkey's currency crisis subsided.

"In a lot of ways some of his actions have amplified this risk-off type of environment, which has ultimately helped the USA dollar strengthen in the near-term", said Charles Tomes, senior investment analyst and trader at Manulife Asset Management in Boston. Lead dropped as low as $US1,919.50, its lowest since September 2016 and the metal's biggest daily loss in almost seven years.

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There was some optimism from news that Donald Trump's National security advisor John Bolton met Turkish Ambassador Serdar Kilic to discuss the pastor issue.

The currency drop is particularly painful for Turkey because it has accumulated a high debt in foreign currencies.

The Turkish lira has lost more than 45 percent of its value this year.

The dispute is one of several between the North Atlantic Treaty Organisation allies, including diverging interests in Syria and US objections to Ankara's ambition to buy Russian defence systems, that have contributed to instability in Turkish financial markets.

Turkey's business lobbies called on Tuesday for a tighter monetary policy to stabilize the lira, and for diplomacy to solve US-Turkish disputes.

The United States and China have slapped tit-for-tat tariffs on tens of billions of dollars worth of goods from each country, with another round of levies scheduled to begin next week.

"The Reserve Bank of India's monetary policy has shown concern for the rupee's fluctuations so investors should not be anxious by knee-jerk reactions in the forex market", Venkatesh said. Higher rates would slow economic growth, which he wants to encourage, but are urgently needed to support the currency and tame inflation, experts say.

The pastor's Turkish lawyer launched a fresh appeal on Tuesday for his release. The 50-year-old pastor is charged with terrorism links and spying. He has denied the charges.

Brunson faces up to 35 years in prison if found guilty. Susan Shand adapted it for Learning English.

This story was reported the Associated Press and by VOA's Chris Hanna. Mario Ritter was the editor.

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