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Turkey - Factors to Watch on May 10

ISTANBUL, May 10 (Reuters) - Here are news, reports and events that may affect Turkish financial markets on Friday.

The lira stood at 1.7981 against the dollar at 0530 GMT, weakening from 1.7944 late on Thursday.

Turkey's main stock index dipped 1.01 percent to 89,931.15 on Thursday, after closing above 90,000 points for the first time ever on Wednesday.

The two-year benchmark bond yield stood at 4.97 percent, down from Wednesday's 5.09 percent. It has dropped more than 120 basis points since the end of March.

GLOBAL MARKETS

Japanese equities soared to a 5-1/2-year peak on Friday as the dollar's break above the symbolic 100 yen level underpinned sentiment, while Asian shares fell as global equities took a breather from recent rallies overnight. The U.S. currency was buoyed as worries about soft patches in the economy faded after Thursday's weekly U.S. data showed initial jobless claims fell to the lowest level in more than five years, following last week's much stronger-than-expected monthly nonfarm payrolls report for April.

ERDOGAN ON SYRIA

Prime Minister Tayyip Erdogan said Turkey would support a U.S.-enforced no-fly zone in Syria and warned that Damascus crossed President Barack Obama's "red line" on chemical weapons use long ago, according to an NBC News interview released Thursday.

EBRD

The European Bank for Reconstruction and Development will hold its annual meeting in Istanbul (0730 GMT, Until May 11). Prime Minister Erdogan, Deputy Prime Minister Ali Babacan will give opening remarks. Finance Ministers of Serbia, Russia and Kazakhstan due to give speeches. Egyptian, Tunisian, Jordanian prime ministers expected to attend.

ENERGY CONFERENCE

President Abdullah Gul and Energy Minister Taner Yldz will attend Istanbul International Climate and Energy Conference organized by Sabanci University (0600 GMT). Yldz will also attend a signing ceremony for a power station deal between Turkey's Hattat Holding and China's Harbin Electric International (1230 GMT).

TOFAS

The carmaker posted a net profit of 104.8 million lira ($58 million) in the first quarter, up 8 percent from a year earlier and exceeding a Reuters poll forecast of 102.9 million lira.

Note: For a list of forthcoming events, see.

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(Writing by Daren Butler)