Emerging Markets stocks edge up as investors weigh US sanctions plans; cenbank events in focus

The AI trade also remained in focus. South Korea's KOSPI .KS11 recovered from an intraday drop of more than 4% to close 0.7% higher, while Taiwan's benchmark .TWII rebounded from a decline of more than 1% to finish up 0.9%.

Investors bought the dip in Asian chip stocks ahead of Nvidia's NVDA.O earnings on Wednesday, betting that the AI-driven rally still has room to run.

The South Korean won KRW=KFTC eased slightly from a near one-year high as the U.S. dollar regained some ground.

"With Korea right now being synonymous with AI, foreign investors are increasingly interested in having exposure to that. This is also leading to a super high current account surplus and definitely helping the Korean won," Roman Ziruk, lead FX strategist at Ebury, said.

The broader emerging-markets currency index .MIEM00000CUS was flat, while the MSCI emerging-markets equity index .MSCIEF rose 0.4% after falling more than 1.5% in the previous session.