EMERGING MARKETS-Stocks near 2-year highs as Fed rate cut hopes linger

A gauge of emerging market stocks approached two-year highs on Tuesday as global stocks rallied amid renewed hopes that the U.S. Federal Reserve could cut interest rates some time this year.

By 0415 GMT, MSCI's gauge for emerging market stocks gained 0.1%, its highest since June 2022, while a gauge of currencies held steady at 1,727.38 points. Bourses in South Africa, Turkey, Hungary and Romania rose between 0.1% - 0.3%.

Risk sentiment flourished after a softer-than-anticipated U.S. jobs report and a dovish tilt by the Fed in its last policy meeting rebuffed concerns around a possible rate hike by the U.S. central bank and kindled policy easing hopes. "It looks like Friday's slightly softer US jobs report has been enough to put paid to any ideas of a Fed hike this year," Chris Turner, global head of markets at ING wrote in a note.

"And Fed officials have also been keen to dampen speculation over a possible hike." Poland's zloty shed 0.4% against the euro ahead of a central bank rate decision later in the week, while the Czech crown lost 0.2%.

Hungary's forint slipped 0.2% against the euro, on track to snap a four-day winning streak ahead of the release of minutes from its central bank's last policy meeting where it cut its lending rate by 50 basis points. South Africa's rand edged 0.1% lower against the dollar, while Russia's rouble strengthened 0.3% against the dollar.

In Asia, shares in South Korea touched over three-week highs, while Hong Kong's Hang Seng shed 0.5%, its first daily decline in 11 sessions. Looking ahead, rate decisions in Mexico, Malaysia and Brazil are some key events across emerging markets this week.

HIGHLIGHTS: ** S&P raises Turkey's rating to 'B+' On Economic Rebalancing

** Hungary's retail sales rise 4.2% in annual terms in March - stats For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see For TURKISH market report, see

For RUSSIAN market report, see

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