*

MSCI EM FX down 0.2%, stocks flat

*

Ukraine bonds stabilize after declines

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US Fed minutes show policymakers split over future policy

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Philippine central banks cuts rates, Indonesia holds

By Purvi Agarwal

Feb 19 (Reuters) - Most emerging market currencies edged

lower while stocks were treading water on Thursday as rising

geopolitical tensions globally kept investors ​on edge.

MSCI's index tracking global EM currencies

was 0.2% lower, at ‌its lowest level in more than a week while

the stocks gauge was flat.

EM assets have been largely range-bound this week as many

markets ⁠in Asia, including mainland China, Hong Kong and Taiwan,

are closed for the Lunar New Year holidays.

U.S.-IRAN, ⁠RUSSIA-UKRAINE TALKS

Geopolitical tensions, that showed signs of easing last

week, were back on ‌investors' radar, with positive or ‌negative

updates likely to impact the oil market.

The White House said on Wednesday that nuclear talks with Iran

were showing progress but the ​two countries were still far apart

on some issues. Markets ‌have not ruled out a broader military

action.

"The balance of risks now tilts to a U.S. strike after

market close Friday ... to say that this could be market- and

geopolitics-moving ​is an understatement," said Michael Every,

senior global strategist ​at Rabobank. "Oil, and ‌presumably LNG,

prices would spike."

Separately, two days of peace talks between Ukraine and Russia

ended on Wednesday without a breakthrough as President Volodymyr

Zelenskiy said he was dissatisfied with the outcome while

Washington ⁠reported "meaningful progress".

The differences in positions held by the United States,

Russia and Ukraine on key issues ⁠have led analysts to believe

that a resolution was not likely in the near term.

Still, Ukraine's international bonds stabilised on Thursday

after broadly shedding over 1 cent on the dollar each in the

previous session.

The dollar index was briefly supported after minutes from

the Federal Reserve's latest meeting showed that policymakers

were not in a rush ⁠to trim ‌interest rates, but was last down

0.1%.

In South Africa, the rand slipped 0.6%, ‌set for its

fourth session of declines. Local stocks edged 0.4%

lower, as gains in broader stocks only limited declines ⁠in

precious metal miners despite an uptick in metal prices.

Turkey's lira was little changed while its

stocks were 1.7% lower.

Most currencies in emerging Europe were muted against the

euro. Stocks in Romania and Poland climbed 0.4%

and 0.3% respectively, while ones in Hungary slipped

0.5%.

Elsewhere in EMs, South Korean stocks jumped over

3% to close at a record high, boosted by tech shares tracking

overnight gains on Wall Street.

The Philippine's central bank delivered a 25-basis-point cut

while Indonesia's kept interest rates on ​hold. Currencies in

both countries were little changed after the widely expected

decisions.

HIGHLIGHTS:

** IMF keeps China 2026 GDP forecast at 4.5% but warns of risks

to growth

** IMF completes Niger program reviews, approves about $91

million in funding

For TOP ​NEWS across emerging markets

For CENTRAL EUROPE market report, ‌see

For TURKISH market report, see

For RUSSIAN market report, see