Global Stocks Sink on Turkey Worries

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.