Emerging Markets-EM assets gain as Fed hike expectations ease

Meanwhile the initial public offering of Nigeria's Dangote refinery, the largest in Africa, will open in the next 10 to 12 days, billionaire owner Aliko Dangote said on Thursday. The listing is expected to be the continent's largest IPO. Asian equity indexes were broadly higher, with heavyweights South Korea .KS11 and Taiwan .TWII rising 1.6% and 1.5%, respectively. The U.S. dollar index =USD was steady, ahead of August payrolls data later on Friday. The softer dollar helped the MSCI's emerging-market currency index .MIEM00000CUS advance 0.3% to record levels. In China, the benchmark Shanghai Composite index .SSEC and the blue-chip CSI300 index .CSI300 lost 0.3% and 0.1% respectively. Chinese banks have been buying U.S. Treasuries in recent months after lifting dollar deposit rates, according to people familiar with the matter. The moves could help slow gains in the yuan and come amid a spike in U.S. yields. The yuan firmed CNY=CFXS, hovering around its highest level in over three years. The Korean won KRW=KFTC extended its recent rally, rising 0.3%, to hover near a more than one-year high. In Turkey, the benchmark stock index .XU100 gained 0.4% while the currency TRYTOM=D4 fell 0.3%. Hungary's central bank will decide on the future path of interest rates based on its September inflation projection, it said in response to questions about a Bloomberg report saying the bank would pause rate easing this month. The forint EURHUF= eased 0.6% against the euro, while Hungarian stocks .BUX gained 0.2%. Polish interest rates should remain unchanged at least until the end of 2026 in the baseline scenario, Iwona Duda, a member of the central bank's Monetary Policy Council, was quoted as saying by Bloomberg. Warsaw's equities .WIG gained 0.6%, while the zloty EURPLN= firmed. Emerging market assets were mostly higher on Friday after investors pared back bets of an imminent rate hike by the U.S. Federal Reserve following dovish comments from a top official ahead of a closely watched U.S. jobs report. The MSCI emerging-market equity index .MSCIEF added 1.4% and was on track to end marginally higher this week. Higher oil prices and rising global bond yields had weighed on risk appetite in recent sessions, stoking inflation fears and higher borrowing costs. In a relief for emerging markets, Federal Reserve Governor Christopher Waller said on Thursday he would favour a hold at the central bank's meeting this month if inflation pressures keep moderating. Traders reduced bets of a September Fed rate hike to around 50%, from 63% on Thursday following Waller's remarks. Higher U.S. interest rates tend to curb demand for riskier emerging-market assets. "The relentless global bond selloff has finally paused over the last 24 hours," said Deutsche Bank Research analysts in a note. "With expectations for a hike in the balance again, that’s heightened the focus on today’s US jobs report."

Emerging Markets-EM assets gain as Fed hike expectations ease

Dangote refinery IPO to open soon

Asian currencies and equities advance

Turkey, Hungary and Poland market moves

Emerging market assets rise as Fed hike bets ease

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