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MSCI global EM FX up 0.1%, stocks gain 0.5%

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Markets rebound after last week's sell-off

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Ukraine bonds rally on prospects of peace deal

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Israel rate decision in focus

By Purvi Agarwal

Nov 24 (Reuters) - stMost emerging market stocks and

currencies staged a recovery on Monday due to increasing

expectations of U.S. interest rate cuts, while Ukraine's

international bonds rallied as peace talks progressed.

The U.S. and Ukraine were set to continue work on a plan to end

the war with Russia, after agreeing to modify an earlier

proposal widely seen as too favourable to Moscow.

The agreement was reached after talks in Geneva on Sunday,

although no specifics were provided. European leaders are also

expected to discuss plans for Ukraine on Monday.

Investors cheered the thought that a Ukraine peace deal was

close, sending its international bonds nearly 3 cents higher on

Monday. The one maturing in 2035 gained the most, adding 2.9

cents to bid at a three-month high of 54.75 cents on the dollar,

according to Tradeweb data.

Russia's rouble strengthened 0.3% against the dollar,

over-the-counter market data showed.

Ukraine-focused stocks gained on the optimism, with

London-based miner Ferrexpo ( FEEXF ) soaring 24%.

"We have been here several times before, but seems like the

pressure of sanctions has Russia slightly more interested in a

peace deal than usual... the mood music is cautiously

optimistic," said Chris Turner, global head of markets at ING.

"We're also seeing natural gas and oil prices close to the

lows of the year... this should all be welcome news for global

growth prospects, should peace talks progress further."

Meanwhile, comments from influential U.S. Federal Reserve

policymaker John Williams on Friday boosted expectations of U.S.

rate cuts in the near term, lifting global market sentiment,

which spilled into emerging markets.

The remarks come even as other Fed policymakers caution

against further reductions until there is more clarity on U.S.

economic health.

MSCI's indexes tracking global emerging market stocks

gained 0.5%, while the currency gauge

was up 0.1%.

The indexes had logged their steepest weekly declines since

April and July, respectively, amid a sharp global risk asset

sell-off.

South Africa's rand gained 0.2% but stocks

fell 0.2%.

Late on Friday, S&P Global upgraded its ratings on Kuwait

and Uzbekistan on economic reforms. It also upgraded Zambia's

foreign currency rating, on "improved creditworthiness" as

authorities take steps to restructure remaining commercial

debt.

Bahrain's was downgraded as the ratings agency expects debt

to rise against the backdrop of a softer oil market and

still-wide fiscal deficits.

The World Bank lifted Kenya's economic growth forecast for this

year to almost 5%, citing a pickup in the construction sector in

East Africa's largest economy.

Most emerging Europe currencies were flat to higher against

the euro. Hungary's forint was an exception, down

0.5%.

Regional stocks in Hungary and Romania jumped

0.6% each, while those in the Czech Republic gained

0.7%.

Turkey's lira was little changed against the

dollar, but stocks fell 0.3%.

Israel's shekel weakened 0.5% ahead of a local

monetary policy decision where the central bank is expected to

deliver a quarter-point cut.

HIGHLIGHTS:

** Bitcoin mining in China rebounds, defying 2021 ban

** South Africa's G20 debt focus to be tested as US takes the

chair

** Thai central bank wants weaker baht, sees room to cut rates,

chief says

For TOP NEWS across emerging markets

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For TURKISH market report, see

For RUSSIAN market report, see