EMERGING MARKETS-Stocks hit seven-month highs, currencies steady ahead of US jobs data

The Hungarian forint held steady at 395.19 per euro after data showed the country's headline inflation eased to an annual 3.7% in February, its lowest since March 2021, and came in below the median forecasts. Hungary's forint looked set for its second straight week of losses, the worst performing amongst local peers after its central bank ramped up the pace of rate cuts last week.

A gauge of emerging market stocks rose to seven-month highs on Friday, as sentiment remained upbeat on hopes that major central banks could consider cutting borrowing costs this year, while most currencies held their ground.

By 0912 GMT, MSCI's index for emerging market stocks was up 0.8%, its highest level since August, eyeing weekly gains of 1.4%. Stocks in Asia had an upbeat close, with South Korea's main share index closing 1.2% higher, while Hong Kong added 0.8%.

Global risk appetite flourished after U.S Federal Reserve Chair Jerome Powell said on Thursday the central bank was "not far" from gaining the confidence it needs in falling inflation to begin cutting interest rates. "Now that markets have been handed a relatively dovish guideline by Powell, the focus turns back to data," ING strategists wrote in a note.

Turkish stocks gained 0.1% early on, while Hungarian stocks were last up 0.3%. Adding to rate cut hopes, European Central Bank policymaker Francois Villeroy de Galhau said the bank will probably start lowering interest rates this spring.

A gauge of EM currencies also rose 0.3%, on track for its second straight week of gains. The Hungarian forint held steady at 395.19 per euro after data showed the country's headline inflation eased to an annual 3.7% in February, its lowest since March 2021, and came in below the median forecasts.

Hungary's forint looked set for its second straight week of losses, the worst performing amongst local peers after its central bank ramped up the pace of rate cuts last week. The Czech crown edged 0.1% lower against the euro, on track for weekly losses.

Official data showed the Czech unemployment rate was unchanged at 4.0% in February, in line with forecasts. Looking ahead, all eyes were on February U.S. nonfarm payrolls data due later in the day, a crucial metric in gauging the state of the labour market of the world's biggest economy and the subsequent outlook for monetary policy.

Elsewhere, Pakistan's sovereign dollar bonds advanced after a spokesperson for the International Monetary Fund (IMF) said the lender will support formulating a new economic programme for Pakistan if the new government seeks one. HIGHLIGHTS:

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