Asian shares gain on US-China trade talks, lira recovers

Asian shares gain on US-China trade talks, lira recovers

Explaining the new tariffs, Turkish Vice-President Fuat Oktay said the rises were ordered "within the framework of reciprocity in retaliation for the conscious attacks on our economy by the United States administration".

German Finance Minister Olaf Scholz told his Turkish counterpart Berat Albayrak in a telephone call on Thursday that Germany has an interest in an economically stable Turkey, a German finance ministry spokesman said.

A Turkish business now effectively owes twice as much as it did at the beginning of the year.

"We have more that we are planning to do if they don't release him quickly", Mr Mnuchin said during the meeting.

The action comes after the Turkish lira slumped to record lows against the USA dollar amid an escalating feud with the United States.

Trump said the United States had helped Turkey in a related incident, but that the North Atlantic Treaty Organisation ally had not repaid the favor.

Turkey should commit to sound economic policies to promote stability and reduce imbalances at a time of market volatility, an International Monetary Fund spokesperson said on Wednesday as a row between Washington and Ankara over the jailing of an American pastor dragged on.

White House press secretary Sarah Huckabee Sanders earlier criticised Turkey's move to impose tariffs on some United States goods as "regrettable and a step in the wrong direction".

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Turkey's lira, meanwhile, dropped nearly 3 percent to almost 6 per dollar TRY=D3 again, having recovered ground rapidly in recent days.

It has gained some support from the announcement late on Wednesday of a Qatari pledge to invest US$15 billion in Turkey. No interest rate increase from the central bank, and a firm no to capital controls, either.

He said many emerging market countries have improved their basic economic policies and regulations, and markets are differentiating between Turkey and these others.

In response, Erdogan has called for a boycott of United States electrical goods.

Investors, already anxious about Turkey's economy, were irked by a diplomatic and trade dispute with the United States over the continued detention of an American pastor Andrew Brunson on espionage and terror-related charges.

Elsewhere, the dollar dipped against a basket of currencies, moving further away from its highest levels since June 2017, hit earlier in the week as investors bought the US currency in a flight to safety.

In the statements made by the Amir in his official Twitter account in Arabic and Turkish, he stressed that Qatar supports and stands by the brotherly Turkish people who have stood by it, noting the depth and strength of the relationship between Qatar and Turkey which is worthy of emulation by other countries. Qatar has been downplaying its public support for Turkey - now at loggerheads with Washington - as it attempts to manage its relationship with the United States. Also helping the currency were moves by Turkey this week to gain favor with European countries, including releasing two Greek soldiers and an Amnesty International human rights campaigner from prison.

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