Emerging Markets-EM stocks steady as investors look to Warsh for Fed clues

Emerging market stocks were subdued on Friday, while currencies edged higher, as investors awaited Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium for clues on his policy outlook. Warsh's appearance at the high-profile Wyoming gathering has become a key focus for markets, with investors watching for signals on the U.S. economy, recent bond-market volatility and risks to the global outlook. "It is hard to predict what Warsh will say and what tone he will strike," said Kathleen Brooks, research director at XTB. "A patient tone with rising inflation could boost dollar-alternative assets while weighing on the dollar and, ironically, pushing bond yields higher as investors express concern about inflation." The Philippine peso PHP= fell 0.6% to a record low, extending losses to nearly 8% since the [Iran war](https://www.reuters.com/world/iran/) began. The currency is particularly vulnerable to higher energy prices given the Philippines' dependence on oil imports. The country's central bank raised its key interest rate on Thursday, describing the move as pre-emptive against inflation risks stemming from this year's El Nino and looming wage rises. The South Korean won KRW= extended recent gains to its strongest level since mid-September 2025 after the Bank of Korea raised its benchmark rate by 25 basis points on Thursday and lifted its growth forecast for the year. Taiwanese shares .TWII gained 0.8%, while South Korea's KOSPI .KS11 fell 1.8%. Tech-heavy Asian markets had rallied on Thursday after AI bellwether Nvidia NVDA.O reported strong results and signalled that the AI spending boom could have years left to run. In China, the Shanghai Composite .SSEC slipped 0.1%, while the CSI 300 .CSI300 lost 0.5%. S&P affirmed China's sovereign credit rating at 'A+', citing expectations that the economy will grow by 4% or more over the next one to two years. The broader MSCI emerging-market equity index .MSCIEF was little changed on the day and for the week. In central and eastern Europe, the Czech koruna EURCZK and Czech stocks .PX were muted. Data confirmed the Czech economy expanded 0.4% in the second quarter, driven mainly by household consumption and investment. Earlier this week, the lower house of parliament over-rode a presidential veto to give final approval to a bill loosening budget-deficit rules, giving the government more room to spend. "With fiscal loosening and a bumper minimum-wage hike on the cards in Czechia, further monetary tightening lies in store," said Liam Peach, senior emerging-markets economist at Capital Economics. Other currencies in the region were also little changed. Russia's central bank is expected to continue cutting its key rate, lowering it to 13.5% from 14% by year-end, Sberbank SBER.MM chief economist Alexander Isakov told Reuters, despite [Ukrainian attacks](https://www.reuters.com/world/ukraine-russia-war/) on economic targets. Russia's rouble RUB= gained 0.8% against the dollar, according to over-the-counter market data. The U.S. dollar USD= held near a one-week high against major peers. Meanwhile, MSCI's emerging-market currency index .MIEM00000CUS rose 0.2% and remained near a record high, putting it on track for a ninth straight weekly gain — its longest such run in about two years. Emerging markets have been supported by a softer dollar following weaker U.S. data earlier this month, which has tempered expectations for further Federal Reserve rate hikes, as well as by U.S. Treasury bond-buyback plans.

Emerging Markets-EM stocks steady as investors look to Warsh for Fed clues

Markets await Warsh speech for Fed clues

Asian markets mixed, peso hits record low

Russia rate-cut outlook and Central Europe

Currencies and equities in emerging markets

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