The death toll from an attack on a rally of Turkey's pro-Kurdish People's Democratic Party (HDP) rose to three on Monday, when a 17-year old teenager died from his wounds, medical sources and the Dogan news agency said.

Friday's attack on an HDP pre-election rally in Diyarbakir, caused by a bomb stuffed with ball bearings, was one of several against the party in the campaign.

Turkish President Recep Tayyip Erdogan suffered the toughest setback of his career in legislative elections but the pugnacious leader is unlikely to want to surrender his status as his country's undisputed number one.

The Justice and Development Party (AKP), the party Erdogan co-founded to make political Islam an election-winning force in Turkey, lost its majority in Sunday's legislative elections for the first time since it came to power in 2002.

A coalition or minority government and early elections are all possibilities as Turkey's political forces weigh an unprecedented situation after the ruling party lost its parliamentary majority in legislative elections.

Turkey's Islamic-rooted ruling party won the biggest portion of the vote in Sunday's polls but lost the parliamentary majority it had held since 2002, delivering a severe blow to President Recep Tayyip Erdogan's ambition to expand his powers.

Turkey on Monday entered a new period of political and financial turbulence after President Recep Tayyip Erdogan's ruling party lost its absolute majority in parliament for the first time since coming to power in 2002.

The uncertainty swiftly rattled financial markets, with stocks tumbling in morning trade and the Turkish lira plummeting in value against the dollar.

Recep Tayyip Erdogan, who has dominated Turkey for over a decade first as premier and now as president, has suffered the worst election setback of his career in legislative polls amid increasing controversy over his polarising rule.

Turkey's Islamic-rooted ruling party lost its absolute parliamentary majority in legislative elections on Sunday, dealing a severe blow to strongman President Recep Tayyip Erdogan's ambition to expand his powers.

The Justice and Development Party (AKP) won the biggest share of the vote in the elections, but well down on the almost 50 percent it recorded in the previous 2011 polls.

Turkish authorities have detained one suspect over a bomb attack that killed two people at a rally of the pro-Kurdish People's Democratic Party (HDP) just ahead of general elections, Prime Minister Ahmet Davutoglu said Sunday.

The strike in the southeastern city of Diyarbakir on Friday left dozens more wounded and added to already simmering tensions ahead of Sunday's tight legislative polls.

Turkish President Recep Tayyip Erdogan on Saturday stepped up his attacks on foreign media a day ahead of legislative elections, telling the Guardian to "know your limits" and lamenting that "Jewish capital" was behind the New York Times.

Erdogan has during the campaign leading up to Sunday's polls repeatedly criticised foreign media, amid growing concerns over an erosion of freedom of expression in Turkey under his rule.

The explosion that killed two people at a rally of the pro-Kurdish People's Democratic Party (HDP) in southeastern Turkey just ahead of legislative elections was caused by a bomb packed with ball bearings, judicial sources said Saturday.

The government has not yet confirmed that the blast in Diyarbakir Friday afternoon was the result of a bomb attack and initial reports had suggested it was due to a faulty electricity transformer.

Turkish Cypriot leader Mustafa Akinci insists he is no "magician", but with some backing from key players, he plans to end 41 years of division in Cyprus in just a matter of months.

The newly elected leader was in New York this week for his first meeting with U.N. Secretary-General Ban Ki-moon on the re-invigorated Cyprus peace talks taking place in a mood of optimism since he won office two months ago.