September 4, 2014 / 4:08 PM / 3 years ago

Turkish markets firm on euro zone rate cut

ISTANBUL, Sept 4 (Reuters) - Turkish assets rose on Thursday after the European Central Bank unexpectedly cut already ultra-low interest rates on the expectation that yield-hunting investors would turn to emerging markets.

Turkey is especially sensitive to changes in global liquidity conditions because of its large current account deficit, which is financed with foreign capital inflows.

Istanbul’s main share index closed up 1.15 percent at 82,266 points on Thursday, outpacing the 0.1 percent rise in the broader emerging markets index.

The benchmark 10-year government bond yield fell to 9.04 percent from 9.1 percent on Wednesday.

The lira firmed to 2.1555 against the dollar by 1440 GMT from 2.1791 late on Wednesday. (Reporting by Dasha Afanasieva; editing by Andrew Roche)

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