By Wayne Cole

SYDNEY (Reuters) - The U.S. dollar gained on the yen in Asia on Monday as investors unwound safe-haven trades in the wake of the failed coup in Turkey, while better U.S. economic news and the promise of central bank stimulus lent support to equities.

The Turkish lira was quoted around 2.9675 <TRYTOM=D3> after the dollar climbed almost 5 percent late Friday to a six-month peak around 3.0476. Dealers noted liquidity was sparse and a true price would only be found once Turkish markets opened.

Ankara said it was in control of the country and economy and widened a crackdown on suspected supporters of the failed military coup, taking the number of people rounded up in the armed forces and judiciary to 6,000.


The initial reaction of investors to the coup had been to bid up safe havens such as the Japanese yen, but that was quickly unwinding. The dollar was at 105.40 yen <JPY=> having briefly been as low as 104.63 late Friday, with trade further thinned by a holiday in Japan.

Likewise, the euro had steadied at $1.1058 <EUR=> after gapping as low as $1.1021 on Friday.

MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was flat having reached its highest in almost nine months last week. Australia <.AXJO> added 0.2 percent and South Korea <.KS11> was little changed.

The E-mini futures contract for the S&P 500 was up 0.1 percent <ESc1>, following on from Friday's upbeat U.S. economic data. The Dow <.DJI> had ended 0.05 percent firmer, while the S&P 500 <.SPX> and the Nasdaq <.IXIC> both lost 0.09 percent.

Prices for U.S. Treasuries were a fraction lower with yields on the 10-year note edging up to 1.56 percent <US10YT=RR>.

In commodity markets, spot gold <XAU=> eased a touch to $1,333.78 per ounce.

Oil prices were little changed at first. Brent crude <LCOc1> was 1 cent lower at $47.60 a barrel, while NYMEX crude <CLc1> fell 11 cents to $45.84.

One mover was the New Zealand dollar which slipped when domestic inflation data showed a surprisingly soft rise of 0.4 percent in the year to June.

The kiwi slid half a U.S. cent to $0.7086 <NZD=D4> as the market narrowed the odds on a cut in rates from the Reserve Bank of New Zealand next month.

Investors are also wagering on policy easings from the Bank of England and Bank of Japan in the next month or so, while few see much chance of the Federal Reserve hiking U.S. rates anytime soon.

(Reporting by Wayne Cole; Editing by Richard Pullin and Eric Meijer)

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