Sept 28 (Reuters) – The Turkish lira hit a record low on Monday on growing concerns around clashes between Armenian and Azeri forces, while emerging market stocks tracked gains in Asia as data showed a jump in Chinese industrial profits.
The lira TRY= tumbled 1.5% to a low of 7.79 against the dollar, while the Russian rouble RUB= eased for the fourth straight session. Azerbaijan AZ167862306= and Armenia AM120765485= sovereign dollar-denominated bonds fell as much as 3-4 cents.
“Fears are that Turkey gets dragged into another regional conflict,” said Timothy Ash, EM sovereign strategist at BlueBay Asset Management, referring to the fighting over Nagorno-Karabakh, an enclave in Azerbaijan controlled by ethnic Armenians.
The lira, already among the worst performing European currencies this year, received a brief respite last week following a surprise move by the central bank to raise its key lending rate, but analysts said