Emerging Markets Surge Amid Hopes of Russia-Ukraine Ceasefire

Emerging currencies and stocks rallied as the prospect of a ceasefire in the Russia-Ukraine conflict boosted investor sentiment. Global EM currencies and stocks rose 0.1%, with the Russian rouble and Ukrainian bonds experiencing significant gains. Meanwhile, oil prices fell amid potential sanctions relief for Russia. European currencies remained stable.

In a significant turn of events, emerging currencies and stock markets saw an upswing on Thursday, driven by the weakening of the U.S. dollar and potential conflict resolution between Russia and Ukraine.

MSCI's indices showed emerging market currencies and stocks both rising by 0.1%, as optimism grew around U.S. President Donald Trump's diplomatic talks with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy. The Russian rouble and Ukrainian bonds experienced notable gains.

Oil prices decreased by over 1% amidst expectations of eased sanctions on Russia. Meanwhile, European currencies remained relatively stable, and stock indices in Poland and Hungary experienced modest increases.

(With inputs from agencies.)