The lira jumped the most since 2008 while the yen and gold extended declines after Turkey’s central bank more than doubled interest rates to arrest a currency slide that roiled global markets. Japanese and U.S. stock index futures climbed while crude oil retreated.
The lira surged 3 percent versus the greenback by 1:35 a.m. in Istanbul, sending the yen lower versus major peers while New Zealand’s dollar climbed. Gold slipped 0.4 percent in a third day of declines. Nikkei 225 Stock Average futures were bid 1.3 percent higher in the Osaka pre-market and Australian stocks snapped a four-day slide. Standard & Poor’s 500 Index (SPX) futures climbed 0.5 percent after the gauge rose 0.6 percent. Oil in New York dropped from a four-week high and natural gas fell.
The lira’s slide to a record low coupled with Argentina’s devaluation of the peso and concern over China’s economy ignited a rout in world equity markets at the end of last week. BlackRock Inc. said the “sharp” rate rise would slow Turkey’s economy though is a welcome first step. Federal Reserve policy makers end their two-day meeting today, with economists polled by Bloomberg Jan. 10 projecting a second $10 billion cut to the record bond buying program that has supported emerging markets.
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