Emerging Markets Ride Upward Wave Amid Key Economic Data Anticipation

Emerging market stocks gained on Monday as attention turned to upcoming economic data for insights on global growth. Czech inflation exceeded expectations, with the crown strengthening against the euro. Geopolitical risks remained high, particularly between Russia and Ukraine. Key data from China and Indian inflation figures are also awaited.

Emerging market stocks generally rose on Monday, driven by anticipation of key economic data later this week that could provide insights into global economic growth. The MSCI index of emerging market stocks saw a 0.4% increase. However, the broader EM currency index remained relatively stable against the dollar as investors awaited U.S. inflation and retail sales data.

Notably, Czech and Romanian consumer price inflation exceeded forecasts in July, with Czech inflation increasing by 0.7% monthly and 2.2% year-on-year. This pushed the crown to a more than one-month high against the euro. Meanwhile, the euro weakened slightly against Hungary's forint, which hit a two-week high.

Geopolitical risks also stayed in focus, particularly as Russia's rouble dipped nearly 2% against the dollar due to increased Ukrainian military activity. Ukrainian currency also weakened. Amidst these developments, Turkish stocks saw an uptick, although the lira declined slightly. In India, the Adani Group shares initially fell but later recovered some losses.