Emerging Markets Surge Amid U.S. and China Economic Developments

Emerging market stocks and currencies rose due to U.S. economic data suggesting continued monetary easing and anticipated stimulus measures from China's finance ministry. Despite this, China stocks ended the week negatively over concerns about the adequacy of the expected policy support.

Emerging market stocks and currencies experienced a rise on Friday following U.S. economic data that maintained expectations for monetary easing in the world's largest economy. Traders are also turning their attention towards China's finance ministry, anticipating new stimulus measures set to be announced to rejuvenate its economy.

The MSCI index of emerging markets saw a 0.3% increase. This comes as U.S. Federal Reserve signals potential future rate cuts amid a downward trend in inflation, despite recent price increases. Notably, eight of the index's top ten constituents saw gains, including a notable 2.5% rise in Taiwan Semiconductors.

In other developments, currency movements were mixed in emerging markets. The Turkish lira weakened as Turkey raised its inflation forecast. Meanwhile, Hungary and Romania saw fluctuations in the forint and leu against the euro, directly tied to local economic projections and data releases.

(With inputs from agencies.)