March 29 (Reuters) – Gauges for emerging market stocks and currencies rose on Tuesday, with the rouble hitting a one-month high against the dollar, as investors await progress on peace talks between Ukraine and Russia.
The MSCI’s index for emerging market stocks .MSCIEF rose 0.6%, as it found its footing after worries sparked by a two-day lockdown in Shanghai. China’s Shanghai Composite index .SSEC ended the day lower. Read full story
Currencies in emerging markets .MIEM00000CUS rose 0.4% as the dollar =USD edged lower after Ukrainian and Russian negotiators met in Turkey for the first direct talks between the two sides in nearly three weeks. Read full story
“It is unclear to what extent the negotiations will make any progress, but hopes of an end to the war might be refuelled,” said You-Na Park-Heger, forex and emerging markets analyst at Commerzbank.
“If the negotiations were to end without any progress being made disappointment is likely to take hold.”
The Russian rouble RUBUTSTN=MCX strengthened around 2% in Moscow trading, hitting a session high of 87.40 against the dollar, while dollar-denominated stocks in the region .IRTS gained around 9%.
Financial markets have been roiled since the onset of the war and as the West continues to harden its stance against Moscow in response to its invasion of Ukraine.
Turkey’s lira TRY= fell 0.2%, while South Africa’s rand ZAR= climbed 0.6% inching toward the five-month peak it hit last week as gold prices steadied.
The rand has been fairly shielded from the fallout of the war, along with Latin American currencies, as they are commodity exporting nations.
On the other hand, importers of commodities and raw materials from regions such as central and eastern Europe as well as Turkey, have suffered far more.
Latin American currencies .MILA00000CUS have gained 6.5% in March, and are set to post their biggest monthly percentage gain since June 2016, banking on the recent rally in commodity and raw material prices.
Poland’s zloty EURPLN= and Hungary’s forint EURHUF= were mixed against the euro ahead of elections over the weekend.
For GRAPHIC on emerging market FX performance in 2022, see http://tmsnrt.rs/2egbfVh