EMERGING MARKETS-South Africa's rand rises after inflation slows more than expected

But, it is still hot and we are still above the midpoint of SARB's (South African Reserve Bank) target range of 3% to 6%." The broader emerging markets stocks index rose 0.3%, while the MSCI index for currencies inched 0.2% up as the dollar retreated. Both indexes had a rough start to the week as concerns around violence in the Middle East escalating and diminished hopes around the Federal Reserve's rate cut pummelled risk assets globally.

The South African rand rose on Wednesday after data showed inflation slowed slightly more than expected in March, while the broader emerging market stocks and currencies indexes rebounded marginally after a rough start this week.

The rand inched 0.5% higher against the dollar at 0826 GMT, after data showed headline inflation growth slowed to 5.3% year-on-year in March from 5.6% in February. Economists expected consumer prices would slow to 5.4% in annual terms. "Rand is showing some strength off the inflation numbers just released but we are still watching it predominantly trade in quite a tight range," said Shaun Murison, senior markets analyst at IG Markets.

"Market is seeing some relief with the inflation ticking back. But, it is still hot and we are still above the midpoint of SARB's (South African Reserve Bank) target range of 3% to 6%." The broader emerging markets stocks index rose 0.3%, while the MSCI index for currencies inched 0.2% up as the dollar retreated.

Both indexes had a rough start to the week as concerns around violence in the Middle East escalating and diminished hopes around the Federal Reserve's rate cut pummelled risk assets globally. Also boosting emerging market equities, heavyweight China shares rebounded as the nation's top securities regulator clarified the new delisting rules to calm the market panic following a sell-off in small-cap shares.

China's small-cap CSI 2000 INDEX closed the session 6.7% higher, while the benchmark Shanghai Composite index and blue-chip CSI300 index rose 2.1% and 1.6%, respectively. Central and Eastern European currencies inched higher, with Poland's zloty leading gains against the euro, last up 0.8%.

The Hungarian forint rose 0.5% after a National Bank of Hungary official said market expectations for Hungary's base rate to fall to 4% by the end of the year are overdone. The forint's exchange rate has become more significant as it is critical for financial market stability and for keeping inflation within the bank's target range, the National Bank of Hungary's chief economist, Zsolt Kuti, said in an interview with news site portfolio.hu.

Meanwhile in Asia, the Indonesian rupiah shed 0.3% and slid to a four-year low against the greenback, extending Tuesday's losses when markets reopened from a week-long Eid al-Fitr holiday. Indonesia's central bank is continuing to intervene in the foreign exchange market to ensure adequate supply and demand, the head of its monetary department Edi Susianto told Reuters.

Vietnam mounted an "unprecedented" rescue of Saigon Joint Stock Commercial Bank (SCB), a lender engulfed in the nation's biggest financial fraud, according to three bank documents and new official information provided to Reuters by a person with access to the documents. In the Middle East, U.S. and its allies planned fresh sanctions against Iran over its retaliatory attack on Israel, seeking to dissuade Israel from a major escalation.

The Egyptian government's main priority is to reduce inflation to within the central bank's target, Finance Minister Mohamed Maait said on Tuesday. Investor continued to focus on discussions between finance ministers and central bankers attending the IMF and World Bank Spring meetings this week.

HIGHLIGHTS: ** IMF sees slow, steady 2024 global growth; China, war escalation pose risks

** Japan, S.Korea finance ministers ready to deploy measures against FX volatility ** Philippine c.bank says first rate cut may come in Q4 of this year

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)