Emerging markets-EM stocks rebound from two-month lows as oil eases, currencies firm

South Korean shares .KS11 closed 3.6% higher, recouping almost all the previous session's losses. The country's equity benchmark had dropped more than 10% in the last two days, led by chipmakers SK Hynix 000660.KS and Samsung 005930.KS as it bore the brunt of wild swings in semiconductor stocks. Analysts expect volatility heading into earnings season, as market participants weigh up whether quarterly results can justify lofty valuations in the tech sector. Taiwan's tech-heavy stock index .TWII and Chinese equities .CSI300 gained 4.2% and 3.1%, respectively. Emerging market equities bounced off recent lows on Tuesday after reports of U.S.-Iran mediation triggered a retreat in oil and relief rally in equities, while currencies were mixed against a steady dollar. Oil prices eased as traders weighed reports of mediation efforts between the U.S. and Iran against an exchange of fresh attacks between the two and threats of a naval blockade of Saudi Arabia by Yemen's Houthis, announced on Monday. Iran had received a proposal from mediators for a 10-day ceasefire in efforts to salvage the deal between both countries signed about a month ago, according to a senior Iranian official. "Investors are sort of learning to live with oil prices at these levels. They've seen higher levels earlier in the year," said Chris Turner, global head of markets at ING. MSCI's global EM stocks index .MSCIEF gained 2.3%, rebounding from over two-month lows, while the currencies gauge .MIEM00000CUS edged 0.04% higher against the U.S. dollar. The relief rally also spread to Europe, with MSCI's index tracking Central and Eastern Europe .MIME00000PUS rising 2%. Polish .WIG and Hungarian .BUX benchmark indexes gained 1% and 2%, respectively, while Romanian equities .BETI rose 1.3%. Turkish equities .XU100 slipped 0.2% while the lira TRYTOM=D3 was little changed. Most Asian currencies were rangebound, while those in emerging Europe saw muted trade. Poland's zloty EURPLN= was trading at its lowest since November 2024. Hungary's forint EURHUF= was firm ahead of its central bank's monetary policy decision later in the day, where it is widely expected to deliver a quarter point rate cut. Hungary's central bank delivered a similar reduction last month, after trimming its inflation forecast. "There's a very strong interest from investors in the Hungary story, particularly looking at the kind of the medium-term potential of euro entry after 2030," added Turner. South Africa's rand ZAR= edged 0.6% higher as crude prices eased, while the country's stocks .JTOPI advanced 0.6%, tracking precious metal prices. Elsewhere, the International Monetary Fund said on Monday that Ukraine had maintained macroeconomic and financial stability despite the war with Russia, and cleared the way for immediate access to financing of about $690 million. An interest rate decision from Nigeria's central bank is also expected later in the day.

Emerging markets-EM stocks rebound from two-month lows as oil eases, currencies firm

Asian technology shares lead the rebound

Emerging market stocks rebound as oil eases

Central Europe firms ahead of rate decisions

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