Emerging Markets Steady Amid Trump-Putin Summit Anticipation

Emerging market currencies exhibited stability as investors awaited the Trump-Putin summit. A gauge of emerging market equities slightly declined after a notable gain. Trump's comments regarding Ukraine offered reassurances. European, Turkish, and Asian currencies showed varied responses, while Vietnam achieved a record equity high amid strategic economic moves.

Emerging market currencies largely held steady on Thursday, reflecting investor caution ahead of the highly anticipated summit between U.S. President Donald Trump and Russian President Vladimir Putin.

The gauge for emerging market equities dipped by 0.4% after experiencing its most significant intraday gain in over a month, reaching nearly a four-year high in the previous session. President Trump warned of serious repercussions should Putin resist the Ukraine peace deal, while also suggesting a potential follow-up meeting involving Ukrainian President Volodymyr Zelenskiy.

Regions across Europe and Asia saw varied market reactions. Eastern European currencies benefited from a weakening U.S. dollar, while Poland and Romania experienced a decline in stocks. Meanwhile, Turkey's economic indicators remained static, with inflation forecasts adjusted. In Asia, Vietnamese equities hit a new high, propelled by its strategic oil purchase from the U.S.

(With inputs from agencies.)