Concerns over Turkey were set to remain at the forefront of traders’ minds, but there were signs that market jitters were ebbing, with the potential for Singapore’s shares to face a more sanguine session on Tuesday.
There were signs of a potential diplomatic solution to the tense relations between the U.S. and Turkey, with White House national security adviser John Bolton meeting with Turkey’s ambassador to the U.S. on Monday to discuss the detention of American pastor Andrew Brunson, who Ankara alleges had a role in a failed 2016 coup.
Japan’s Nikkei 225 Index was up 1.25 percent in early trade.
In the U.S., the Dow Jones Industrial Average ended down 0.5 percent at 25,187.7, the Nasdaq was off 0.25 percent at 7819.706 and the S&P 500 finished down 0.4 percent at 2821.93. Futures for the three indexes had their noses in the green.
The Straits Times Index ended Monday down 1.20 percent at 3245.34; futures for August were at 3225 at Monday’s close, while futures for September were at 3227.
The dollar/Turkish lira was at 6.8749 at 8:33 A.M. SGT, after trading as high as 7.2149 on Monday, according to DZHI data.
“The fact dollar/lira is back testing the seven-handle suggests traders are not convinced that the worst is over, but the headline risk is real and dominated by algo trading and those with the ability to react the quickest. It takes a brave soul to be trading this pair,” Chris Weston, head of research at Pepperstone, said in a note on Tuesday.
“We are closer to a point when we could see some covering of a crowded U.S. dollar long position. That said, dollar/lira remains a clear candidate for traders to buy pullbacks here,” he added.
The U.S. dollar index, which measures the greenback against a basket of currencies, was at 95.18 at 8:17 A.M. SGT, off levels as high as 96.50 on Monday, according to ICE Futures data.
The euro/dollar was at 1.1404 at 8:29 A.M. SGT, off levels as low as 1.1364 overnight, according to DZHI data.
The dollar/yen was at 110.749 at 8:30 A.M. SGT, after trading in a 110.08 to 110.939 range on Monday, according to DZHI data.
The U.S. dollar was fetching S$1.3758 at 8:31 A.M. SGT, after trading in a S$1.3716 to S$1.3773 range on Monday, according to DZHI data.
The dollar/yuan was at 6.887 at the close on Monday, according to DZHI data.
The 10-year U.S. Treasury note yield was at 2.885 percent at 8:41 A.M. SGT, up from levels as low as 2.851 percent on Monday.
U.S. crude oil prices pointed to a mixed open in Asia on Tuesday ahead of weekly U.S. inventory estimates and industrial production figures from China.