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Markets find footing after sharp declines last week

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Hopes for Russia-Ukraine peace deal kept alive

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Ukrainian bonds rally

By Niket Nishant and Twesha Dikshit

Nov 26 (Reuters) - Emerging market assets rose on

Wednesday, stretching their gains for the week as firming bets

on an interest rate cut by the Federal Reserve boosted

sentiment, while investors eyed developments on the proposal to

end the war in Ukraine.

The rebound comes after a bruising downturn last week, when

unease over lofty AI valuations and tech behemoths curbed risk

appetite.

The moves will be critical to setting the tone for the

region as markets head toward the end of the year. Rate cuts by

the Fed lower funding costs and typically channel more capital

into higher-yielding emerging markets currencies.

At the same time, any credible progress on a peace deal in

Ukraine could unleash bullish spirits. Ukrainian President

Volodymyr Zelenskiy said on Tuesday he was ready to advance a

U.S.-backed framework for ending the war with Russia and discuss

disputed points with U.S. President Donald Trump.

MSCI's emerging market equities index jumped 1%.

Regional currencies were up 0.1%.

UKRAINE BONDS CLIMB

Some Ukrainian bonds climbed on Wednesday, with a few issues

trading at their highest levels in nearly nine months.

"While the initial deal was seen as strongly favouring

Russia, it now sounds as if Ukraine has finally had some input

and has managed to engineer some significant changes," said

David Morrison, senior market analyst at Trade Nation.

Investors will also be parsing data releases, including

Polish unemployment figures for October and Russian industrial

production numbers.

Polish equities inched up, on track for their third

straight day of gains if current levels hold. The Polish zloty

was 0.2% weaker against the euro.

State-controlled coal miner JSW's shares were up

2.5% a day after results.

Separately, Senegal announced a recalculated gross domestic

product resulting in improved debt metrics, a move the finance

ministry has described as an attempt to give a more accurate

picture of the economy as it grapples with a crisis over

unreported debt.

OVERSUPPLY CONCERNS PRESSURE OIL

Oil prices climbed on Wednesday after sliding to a one-month

low in the previous session, though an expected supply glut and

a potential Russia-Ukraine peace deal kept a tight lid on gains.

Saudi Arabia's stock index fell nearly 1% and was on

track for its third consecutive day of losses.

"Positive signals from both the U.S. and Ukraine regarding a

Russia-Ukraine peace deal continue to put pressure on energy

markets. However, there's little clarity on where Russia stands

on the current plan," economists at ING wrote in a note.

Elsewhere in the emerging market universe, South Korean

shares advanced 2.7% and Taiwan shares climbed

1.9%. Malaysian, Singaporean and Indonesian

stocks also jumped.