EM equities gain as fresh AI optimism boosts Asia stocks; currencies mixed

The South African benchmark .JTOPI dipped 0.2%, tracking a dip in gold prices, while the rand ZAR= was flat. GOL/ In emerging Europe, markets were mixed, with Polish blue-chip stocks .WIG20 and Romanian equities .BETI up 0.1% and 0.7%, respectively, while Hungarian shares .BUX dipped 0.5%. Most emerging European currencies declined against the euro, with the Hungarian forint HUF= losing the most ground by 0.6%. The Polish zloty PLN= edged 0.1% lower. Data showed Poland's annual inflation decelerated to 2.5% in June from 3.1% in May, reinforcing expectations for monetary easing. S&P Dow Jones Indices said late on Tuesday it was consulting on reclassifying Poland to "developed" status from "emerging," a decision that could come in September 2027. Markets in Turkey remained closed for a public holiday. MSCI's index tracking emerging market stocks rose on Wednesday, boosted by robust gains in Asian equities as investors returned to chip firms, while currencies were mixed ahead of more U.S. inflation data. MSCI's global EM stocks index .MSCIEF rose 2.1%, with most gains driven by tech-heavy Asian bourses. Sentiment for artificial intelligence-related stocks improved after ASML ASML.AS, the world's biggest semiconductor equipment manufacturer, raised its 2026 revenue forecast on robust demand for its products. South Korea's KOSPI .KS11 climbed 6.2%, led by chipmaker SK Hynix 000660.KS, which gained 8.8%, while Taiwan's tech-heavy benchmark .TWII advanced 2%. Chinese stocks .CSI300, .SSEC fell 0.2% after data showed the country's economy expanded at its slowest pace in more than three years. On the FX front, the MSCI currencies gauge .MIEM00000CUS was little changed, as was the dollar index =USD, which steadied after logging its biggest fall in nearly two weeks in the previous session. Investors awaited more price data from the U.S., after a softer-than-expected consumer inflation reading on Tuesday prompted traders to scale back expectations for a Federal Reserve rate hike later this month. "The weak print has outweighed the dollar-supportive impact of renewed geopolitical tensions in the Middle East ... in the immediate near-term, further dollar consolidation seems likely amid still long positioning and less urgent Fed tightening risks," said strategists led by Alvise Marino at UBS. "However, we still favour buying dips, as Fed tightening risks have been reduced but not eliminated, oil prices face upside risk if Middle East tensions persist and strong U.S. earnings could restore demand for U.S. assets." Iran's Islamic Revolutionary Guard Corps threatened to close "all other export corridors that benefit the U.S. and its allies," Iranian media reported, after Iran shut the Strait of Hormuz and the U.S. reimposed a naval blockade of Iranian ports. Uncertainty over energy disruptions sent oil prices 2% higher, offsetting some risk-on sentiment. O/R

EM equities gain as fresh AI optimism boosts Asia stocks; currencies mixed

South Africa and central Europe markets mixed

Emerging market stocks rise on AI-led gains in Asia

Currencies steady as traders watch U.S. inflation and Fed expectations

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