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Feb 7(Reuters) – Emerging market stocks pushed higher on Wednesday, as Chinese markets extended their rebound on hopes of further support from authorities, while Argentinian assets were in focus after a setback for President Javier Milei’s economic reform bill.

MSCI’s index for emerging market equities .MSCIEF was up 0.3% by 0946 GMT, after hitting its highest level since Jan. 3 earlier in the session.

China’s blue-chip CSI 300 Index .CSI300 rose 1% while the Shanghai Composite index .SSEC ended up 1.4%, both pulling further away from recent five-year lows.

A raft of steps announced by Chinese authorities, including curbs on short-selling, have helped steady the country’s sagging stock markets in the last few sessions and hopes for more powerful market rescue measures have increased.

South Korea’s benchmark KOSPI .KS11 index also jumped 1.3%.

Meanwhile, investors were watching Argentinian assets after a major economic reform package championed by libertarian President Javier Milei was set to be sent back to a legislative committee for consideration, marking a major setback for the bill.

Argentina’s dollar-denominated bond maturing in 2041 040114HV5=1M fell 0.61 cents to trade at 33.683 cents on the dollar.


“We think the catalyst for the bonds will be progress on (or hurdles to) the legislative agenda and the signals it sends over popular support for Milei’s adjustment plan. Implementation risks will then follow,” analysts at Tellimer said in a note.

A basket of EM currencies .MIEM0000CUS was flat while the dollar =USD retreated from a three-month high.

Risk-sensitive EM currencies have been under pressure in 2024 as hawkish remarks from policymakers have led traders to dial back bets of early rate cuts from the Federal Reserve.

Most regional currencies will struggle to recoup this year’s losses against the dollar in coming months, a Reuters poll of FX strategists found.

Poland’s monetary policy decision is also on tap, with the central bank expected to keep its main interest rate on hold at 5.75% at 1300 GMT.

The Polish zloty EURPLN= was up 0.2% versus the euro while stocks in Warsaw .WIG advanced 0.3%.


Elsewhere, Sri Lanka expects to implement a debt restructuring framework within the first six months of 2024, the country’s president said on Wednesday.

(Reporting by Amruta Khandekar; editing by Christina Fincher)