Turkish lira weighed down by geopolitical worries

Turkish stocks ended the session slightly higher after trading in the red - at one point registering the worst performance from among the 90 bourses tracked by Bloomberg - for most of the morning.

The Borsa Istanbul 100 benchmark index closed 0.53% higher at 71,313.81 points after registering loss of as much as 1.5% earlier on after the country's military shelled Syrian Kurdish forces belonging to the YPG which it said were trying to take hold of more territory on their side of the border.

Some observers said the move might hamper the fight against Islamic State in Syria as the different factions and their proxies jostled for position ahead of the expected start of a partial ceasefire.

The US dollar made gains of 0.48% against the Turkish lira to finish at 29.44, while the yield on 10-year Turkish government bonds dipped by five basis points to 4.976%.

America's State Department called on both sides to de-escalate the tension.

Ankara considers the YPG a terrorist group.