Emerging market equities and currencies gained on Wednesday, extending weekly gains as expectations of a U.S. Federal Reserve interest rate cut buoyed sentiment, while investors monitored developments on a potential Ukraine peace framework.

MSCI’s emerging market equities index jumped 1%, while regional currencies rose 0.1%. The rebound follows last week’s downturn, when concerns over elevated AI valuations and tech stocks curbed risk appetite.

Ukraine Bonds Climb
Some Ukrainian bonds reached near nine-month highs as President Volodymyr Zelenskiy signaled willingness to advance a U.S.-backed framework for ending the war with Russia. Analysts noted that Ukraine appears to have secured significant concessions in recent talks, lifting investor confidence.

Regional Moves

• Polish equities inched higher, with the zloty down 0.2% against the euro. JSW shares climbed 2.5% after results.
• Senegal recalculated GDP, improving debt metrics amid concerns over previously unreported debt.

Oil and Energy Markets
Oil prices rebounded after hitting a one-month low, though oversupply concerns and uncertainty over a Russia-Ukraine peace deal limited gains. Saudi Arabia’s TASI index fell nearly 1% for a third straight day.

Other EM Markets

• South Korea (KOSPI) +2.7%
• Taiwan (TWSE) +1.9%
• Malaysia (BURSA), Singapore (STI), and Indonesia (COMPOSITE) also advanced, reflecting broader EM optimism.