ISTANBUL, 27 June — A wave of disappointment swept Turkey as the soccer team that had carried the hopes of a battered nation caved in to Brazil in a World Cup semifinal few had dared dream the side would even reach.

“We’re in the big league of world soccer now and in the years to come the whole world will stop for us,” said Levent Bilinc, watching the game in a crowd of thousands in Istanbul’s central Taksim square.

“We’re very sad but we’re going to win the playoff and come third,” he said.

Thousands had gathered around a giant screen to watch the game in Taksim, the tension visible on faces painted in the national colors of red and white. People climbed on benches and vans to get a better view, but the party mood was dampened when Brazil scored minutes into the second half.

Prime Minister Bulent Ecevit praised the team in a statement issued before he was due to enter hospital for check-ups that will determine whether he can return to work after an absence that has raised fears of government crisis and elections. “The national team has given a boost to our self respect,” he said. “For that I thank them all and the managers.” Ronaldo’s goal was enough to give Brazil the match 1-0.

“We were totally demoralized when Brazil scored,” said Husamettin Zayit, who was selling soccer memorabilia.

World Cup fever was apparent from the early hours with cars and balconies sporting the Turkish flag and television presenters dressed in the national colors. Public workers were given the afternoon off to watch the game. Financial markets ground to a halt in a welcome breather from a difficult day. Traders said the bourse trading floor was deserted with most people watching the game on large screens.

Turkey was appearing in the World Cup finals for the first time in 48 years and had set their sights on reaching the last eight after a run of success in European competition at club and national level.

The team’s success in reaching the last four sparked unprecedented celebrations in a country struggling to recover from a devastating financial crisis last year that slashed over a million jobs and led to the worst recession since 1945. Yesterday’s mood was a far cry from the scenes of jubilation after the victory over Senegal.

“I don’t know what to say. I’m so depressed, I have become ill,” said a 60-year-old teacher who gave her name only as Nazmiye. “I was so hopeful about our team but I’m really disappointed now. May God give patience to our nation to overcome such misery,” she said, speaking through her tears. “The Turkish people do not deserve this,” said Mehmet Gonul, 20, a waiter in Ankara. “I feel like my heart will stop. We were bad, really bad, especially in the last minutes,” he said.

Others took the defeat more easily.

“It was a good game, we were OK but we lost. Brazil is really better than us, nobody can deny that, so I’m not sad,” said Suleyman Ates, 24, a civil servant.

“No matter what the result is, the national team is our champion,” said Hakki Cetin, a 32-year-old bank worker. “We love them and we are proud of them.”