Dec 21 (Reuters) – Emerging market stocks steadied on Wednesday after touching a three-week low in the previous session, with South African equities boosted by miners as prices of precious metals soared.

The MSCI’s index for emerging market stocks .MSCIEF rose 0.1% after closing 0.7% lower on Tuesday when the Bank of Japan stunned markets with a shift in monetary policy that dampened hopes of global central bank tightening cycles ending anytime soon.

EM stocks have been hammered, much like their developed world counterparts, amid tighter monetary conditions and a slowdown in China, which is now experiencing a spike in coronavirus infections after a recent loosening of its zero-COVID policy.

Prices of gold hovered near one-week highs hit in the previous session, helping lift shares of South African miners including Sibanye Stillwater SSWJ.J, Impala Platinum Holdings IMPJ.J and Northam Platinum Holdings, which added between 1.5% and 2.3%.

The South African blue-chip stocks index .JTOPI rose 0.5%.

“The weaker dollar makes the metal cheaper for foreign buyers and there may also be a ‘safe haven’ play coming in as well, given the pessimism surrounding prospects for the global economy,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown in London.

Currencies of developing nations were rangebound on the day, with the MSCI’s EM currency index .MIEM00000CUS flat but a recent weakness in the dollar index =USD has positioned EMFX for weekly gains.

Higher exposure to commodities have helped certain emerging markets more than others, with Latin American regions set to outperform broader EMs in 2022. The MSCI’s index for Latam stocks .MILA00000PUS is set to end the year flat against a near 23% plunge in the broader EM index .MSCIEF.

Russia’s rouble RUBUTSTN=MCX plunged to its weakest level since early May past 70 against the dollar, extending weekly losses on fears over sanctions on Russian oil and gas spooking the market.

For GRAPHIC on emerging market FX performance in 2022, see http://tmsnrt.rs/2egbfVh

For GRAPHIC on MSCI emerging index performance in 2022, see https://tmsnrt.rs/2OusNdX

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(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Hugh Lawson)