EMERGING MARKETS-Stocks rise as Nvidia calms AI bubble fears; efforts to end Ukraine war eyed

Emerging market stocks rose on Thursday as part of a global relief rally after Nvidia's strong earnings calmed worries about an overvalued tech sector, while investors eyed a number of central bank decisions and moves to end the war in Ukraine. MSCI's EM stocks index gained 0.9% helped by tech majors in Taiwan and South Korea as U.S.-listed AI bellwether Nvidia's strong results and forecast placated worries that a global frenzy over the technology had grown into a bubble.

Emerging market stocks rose on Thursday as part of a global relief rally after Nvidia's strong earnings calmed worries about an overvalued tech sector, while investors eyed a number of central bank decisions and moves to end the war in Ukraine.

MSCI's EM stocks index gained 0.9% helped by tech majors in Taiwan and South Korea as U.S.-listed AI bellwether Nvidia's strong results and forecast placated worries that a global frenzy over the technology had grown into a bubble. Those worries plagued global markets earlier this month and dragged the MSCI EM index to a one-month low. While overvaluation concerns persist, they were temporarily offset by signs that demand for the technology was robust. Adding to the relief, officials told Reuters that the U.S. might not levy long-promised semiconductor tariffs soon.

Investors were monitoring fresh efforts by the U.S. to end the war in Ukraine as Reuters reported that a draft framework proposed that Kyiv give up territory and some weapons. Ukrainian bonds were near two-week highs, adding about 0.7 cents each to build on gains from the previous session. "Although we do not have much evidence of progress in the negotiations, for the markets, it is a signal of a higher probability that we will move in this direction," said Chris Turner, global head of markets at ING. Most currencies were steady, with MSCI's gauge at a two-week low as the focus shifts to the U.S. September jobs report that was delayed by the government shutdown and which will provide vital information to Federal Reserve policymakers who have been divided on the monetary policy outlook. South Africa's central bank will deliver its rate decision later in the day. The rand slipped 0.1% while the yield on the benchmark bond was steady as investors priced in a potential 25 basis point interest rate cut to 6.75%.

President Cyril Ramaphosa is expected to give a presidential address later in the day at the two-day G20 Business summit in South Africa. China's yuan was flat after the central bank left its benchmark lending rates unchanged, as was Egypt's pound ahead of a local interest rate decision. Earnings were in full swing in central and eastern Europe. Shares of Poland's Allegro lost 4% after the company trimmed its annual volume growth forecast, while insurer PZU was up 4.4% after reporting a jump in third-quarter profit. Czech Colt CZ Group fell 2.6% after lowering its annual outlook.

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