(Bloomberg) -- The yen climbed and the euro sank as turmoil in Turkey deepened amid wider concern of potential market contagion, with the lira heading for fresh lows. Asian equity traders were poised for losses.

Trading look set to be dominated by events in Turkey, where President Recep Tayyip Erdogan maintained his defiance toward the U.S. and financial-market orthodoxy in speeches on Sunday even after the nation’s currency plummeted. The lira was quoted at unprecedented levels above 7 per dollar early Monday in Asia before recovering somewhat after the country’s banking regulator limited swap transactions. Equity futures signaled declines for Japan and Hong Kong.

Money is flowing into safe-haven assets like Treasuries and the Japanese yen as the situation in Turkey raises concern over the exposure of euro-zone banks. The lira’s plunge Friday reminded investors of past crises in emerging markets and rattled nerves show little sign of calming in early Monday trading.

Read the latest on how policy making paralysis in Turkey promises more tumult.

Terminal users can read more in our Bloomberg Markets Live blog here.

Here are some key events coming up this week:

  • China release industrial production, fixed-asset investment and retail sales data Tuesday.
  • Earnings are due this week from companies including India’s Tata Steel, Maersk, Home Depot, China Unicom, Tencent, Cisco, Walmart, and Carlsberg.
  • Brexit talks between the EU and the U.K. resume in Brussels Thursday. The EU is signaling it wants to make September a decisive month in the divorce negotiations, while U.K. Prime Minister Theresa May favors a late-fall deadline.
  • Australian central bank Governor Philip Lowe testifies before Economics Committee on Friday.

These are the main moves in markets:

Stocks

  • Futures on Japan’s Nikkei 225 slid 0.5 percent in most recent Singapore trading.
  • Futures on Hong Kong’s Hang Seng Index dropped 0.7 percent.
  • Futures on Australia’s S&P/ASX 200 Index rose 0.2 percent.
  • The S&P 500 fell 0.7 percent Friday.

Currencies

  • The euro sank 0.3 percent to $1.1380.
  • The Japanese yen climbed 0.3 percent to 110.50 per dollar.
  • The lira was quoted at 7.0997 per dollar at 7:10 a.m. in Sydney. It’s down 40 percent this year.
  • The offshore yuan was steady at 6.8705 per dollar, after dropping 0.3 percent Friday.

Bonds

  • The yield on 10-year Treasuries sank five basis points to 2.87 percent Friday.

Commodities

  • West Texas Intermediate crude increased 1.2 percent Friday to $67.63 a barrel.
  • Gold futures decreased 0.2 percent Friday to $1,210.57 an ounce.

To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Cormac Mullen

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