Turkish stocks fall 3 pct, lira 1 pct on unsatisfying US banking package

The benchmark Istanbul exchange fell 3 percent in the morning session, while the lira lost some 1 percent against the U.S. dollar and traded above 1.63 levels.

 

Investors were under whelmed by the U.S. bank rescue package announced by Treasury Secretary Timothy Geithner in Washington on Tuesday, saying it lacked clarity.

 

Geithner unveiled a new bank rescue plan that would put $2 trillion to work mopping up bad assets and restoring credit.

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Geithner said the plan would "bring the full force of the United States government to bear to strengthen our financial system so that we get the economy back on track."

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The plan called for a public-private fund aimed at soaking up toxic assets clogging the financial system, starting with at least $500 billion.

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It also included new efforts to boost consumer lending, limit home foreclosures and provide new capital for banks.

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Asian stock markets tumbled on Wednesday, following a 4.62 plunge at Wall Street on Tuesday, amid thousands of job cuts across the globe and China export data showing that Asia’s second biggest economy was being squeezed further by the global economic slump.

 

Hong Kong ended the morning session more than 3 percent down, while Sydney closed 0.4 percent down and Seoul was 1.5 percent off.

 

The yield on Turkey's benchmark June 23, 2010 bond rose above 15 percent from with a 0.4 percent increase from Tuesday's close.