Turkish markets mixed

Turkish assets were mixed on Friday as a disappointing US jobs report hampered investor appetite for riskier emerging market assets while better-than-expected Turkish May industrial output data raised fears Turkey's surging economy may be overheating.
World stocks slipped after US data showed employers hired the fewest number of workers in nine months in June, dashing optimism the economic recovery was regaining momentum. By 1238 GMT the lira had weakened to 1.6290 per dollar from 1.6221 before the US data and from a previous close of 1.6360.
The lira has gained since late on Thursday after J.P. Morgan said in a report that the currency had been oversold. Early last week it touched its weakest level in 26 months at 1.6520. Turkey's industrial output rose 8 percent on the year in May, slowing slightly from April's growth rate but exceeding a consensus forecast, signalling attempts to cool the economy are still largely ineffective.
The median forecast in a Reuters poll of 14 analysts was for growth of 7.15 percent after an 8.3 percent expansion in April. "Although second-quarter GDP growth is likely to be flat following a stronger-than-expected first-quarter GDP reading, there are signs suggesting that economic activity in the third quarter will be reasonably strong ... Turkey is set to experience robust GDP growth this year, intensifying overheating concerns," said Ilker Domac, regional head of economics at Citigroup.
Concerns the economy is overheating, doubts over the central bank's reluctance to raise interest rates despite strong growth and a weak global backdrop have all weighed on Turkish assets this year. The lira has lost around 6 percent of its value to the dollar since the start of 2011. The yield on Turkey's benchmark February 20, 2013, bond fell to 8.91 percent from a close of 8.97 percent on Thursday.
Market year-end inflation expectations have risen steadily this year from 6.56 percent at the start of 2011. The central bank itself forecasts year-end inflation at 6.9 percent, far in excess of its official target of 5.5 percent. The main Istanbul share index was down 0.1 percent at 64,092.97 points, in line with gains in the emerging markets benchmark index .
Shares in Sanko Pazarlama, a unit of conglomerate Sanko Holding, jumped 16 percent to 5.52 lira after Japanese air conditioner maker Daikin Industries said it had reached a deal to buy Turkish air-conditioning company Airfel from Sanko Holding.