Why Crackdown on Turkish Opposition Rattles Markets

Political stability is usually prized by investors in emerging markets. Yet Turkish stocks and bonds have come under pressure this year amid a judicial crackdown on the country’s political opposition that appeared to cement President Recep Tayyip Erdogan’s more than two-decade rule.

The most dramatic drop came in March after Erdogan’s most prominent rival, Ekrem Imamoglu, was arrested and jailed over corruption charges. Subsequent market routs were triggered by the launch of graft investigations targeting other prominent figures in the opposition Republican People’s Party (CHP), including Ankara Mayor Mansur Yavas.