ISTANBUL Aug 8 Turkish assets firmed up on
Friday afternoon as fears of a negative credit rating review by
Moody's eased and markets anticipated stability and continuity
in the wake of Sunday's presidential election.
The lira firmed to 2.1606 against the dollar by 1439 GMT
compared to 2.1638 late on Thursday along with other emerging
market currencies, hurt by a sell-off driven by fears over
conflicts in Iraq and Ukraine sapping economic growth.
On the last trading day before Turkey's first direct
presidential election, which Prime Minister Tayyip Erdogan is
expected to win, Istanbul's main share index closed up
0.45 percent at 78,199 points, outperforming the broader
emerging markets index which was down 0.54 percent.
The benchmark 10-year government bond yield
fell to 9.38 percent from 9.46 percent at Thursday's close.
Speculation over the outcome of ratings agency Moody's
routine review after the market close on Friday had previously
unnerved investors, but those nerves began to settle in the
Moody's has a Baa3 rating on Turkey with a negative outlook.
(Reporting by Dasha Afanasieva; Editing by Hugh Lawson)