Turkish President Tayyip Erdogan's hopes of assuming greater powers suffered a serious blow on Sunday when the ruling AK Party failed to win an outright majority in a parliamentary election, partial results showed.
With 94 percent of ballots counted, the AKP had taken 41 percent of the vote, according to broadcaster CNN Turk, a result which will leave it struggling to form a stable government for the first time since it came to power more than a decade ago.
"We expect a minority government and an early election," a senior AKP official told Reuters on condition of anonymity.
The lira currency weakened sharply against the dollar in thin out-of-hours dealing as investors, fearing further political uncertainty. The main Turkish stock index fell over 8 percent at the start of trade on Monday.
The atmosphere outside the AKP's headquarters in Ankara was muted. Several hundred supporters chanted for Erdogan, the party's founder, but there was little sign of the massive crowds that gathered under its balcony after past election victories.