*

EM stocks flat, FX down 0.09%

*

Hungary raises 2025, 2026 budget deficit targets to 5% of

GDP

*

Hungary's October inflation stable at 4.3% y/y, below

forecast

*

Romania's interest rate decision later in the day

*

Czech CPI at 2.5% y/y in October

*

Polish stock market closed for Independence Day

By Nikhil Sharma

Nov 11 (Reuters) - Emerging market stocks were largely

steady on Tuesday, with sentiment aided by progress toward

ending the prolonged U.S. government shutdown, while investors

also looked ahead to Romania's interest rate decision later in

the day.

A broad gauge of emerging market stocks was stable

at 1400.69 points after soaring 1.3% in the prior session,

taking cues from risk-taking sentiment across global markets.

Separately, a parallel index for EM currencies

also nudged down 0.1% following modest gains on

Monday.

Despite a fade in the risk-on rally, markets stayed

resilient after the U.S. Senate on Monday approved a compromise

to restore federal funding and extend it through January 30,

ending the longest government shutdown in U.S. history.

Asian emerging economies extended their run, with

Singapore's FTSE Straits Times index advancing over 1% to

hit an all-time high.

"The prospects of the end to the government shutdown are

equating positively across the global financial markets, and

this is what we saw yesterday," said Ipek Ozkardeskaya, senior

market analyst at Swissquote Bank.

"Today, we see that the positive impact of yesterday is

fading because we don't have more fresh news about the US story.

But it looks like the end of the US government shutdown would

send a positive wave across the global financial markets."

In Central-Eastern Europe, the Hungarian forint

dropped 1% after gains in the previous session, following

Hungary's one-year exemption from U.S. sanctions on Russian

energy secured during a meeting between Prime Minister Viktor

Orban and U.S. President Donald Trump.

Orban, who faces what analysts say could be a closely fought

election next year, also brokered an agreement that could

include cooperation on swaps, a loan facility, a development

bank credit, or infrastructure financing amid an EU funding

freeze.

Meanwhile, data showed the annual inflation rate stabilised

at 4.3% in October, below the forecast, building an argument for

policy easing in the country.

According to the news website telex.hu, Hungary's government

raised its budget deficit targets to 5% of economic output for

both 2025 and 2026.

Budapest stocks lost 0.94%, on pace for its worst

single-day fall in nearly two months.

The usually quiet markets in Romania were also in focus as

the country braced for an interest rate decision later in the

day. Analysts expect the central bank to keep its benchmark rate

on hold at 6.50% amid price pressures triggered by higher taxes

and energy prices.

Romanian leu traded with caution, while Bucharest

stocks rose 0.64% to hit a record high.

The Czech koruna was flat, while Prague's main

stock index edged up 0.57% to a new high after annual

inflation rate remained stable at 2.5% in October, bringing in a

sign of relief after its central bank projected upside price

risks from wage growth and potential government spending.

Additionally, the Polish zloty was stable, while

Warsaw's benchmark index was closed for Independence

Day.

Elsewhere in EM, the Thai baht weakened 0.25% against

the U.S. dollar. Thailand's government confirmed on Tuesday that

it would halt the implementation of an enhanced ceasefire

agreement with Cambodia.

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see