(Updated at 0850 GMT)

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Israel sends delegation to negotiate hostage release with

Hamas

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Poland's inflation to peak in Q1 2025, c.bank says

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Korean shares end near over 2 yr high on Samsung boost

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Stocks up 0.1%, currencies flat

By Johann M Cherian

July 5 (Reuters) - Most emerging markets stocks and

currencies were muted on Friday ahead of a key U.S jobs report,

while investors assessed the possibilities of large-scale bond

sales by China's central bank and awaited an interest rate

decision out of Romania.

Yields on Chinese bonds

inched up about 2 to 4 basis points after the People's Bank of

China (PBOC) said it had hundreds of billions of yuan worth of

bonds, and would sell them depending on market conditions as

part of a plan markets see as an effort to cool a bond rally.

Given wider economic issues in the world's second-largest

economy, traders have turned to safe-haven bonds, sending yields

to record lows, with the yield on China's 10-year bond standing

at 2.2%, compared with 4.3% on the U.S. benchmark.

"We think the forces pushing down long-term yields are

mostly structural and doubt that they will reverse any time

soon," said Julian Evans-Pritchard, head of China economics at

Capital Economics. "The best that the PBOC can probably hope to

achieve is to stabilize yields around current levels for a few

quarters, but not indefinitely," he said.

MSCI indexes tracking equities in developing economies

inched up 0.1% and were set for a weekly rise of 1.8%.

Korea's tech-heavy index rose 1.3% to hit a nearly

30-month high, bumped up by Samsung Electronics ( SSNLF ) 3%

jump after the phone maker estimated a more than 15-fold rise in

its second-quarter operating profit.

A key U.S. employment report will top the day's agenda later

on as it could influence the outlook for the dollar and the

Federal Reserve's interest rate path.

Most emerging market currencies have been under pressure

this year, with their gauge so far down nearly

1%, as their central banks have kicked off monetary policy

easing cycles while the U.S. Fed is holding off with cutting its

rates.

In central and eastern Europe, Romania's leu was

muted against the euro ahead of its central bank's decision,

with economists expecting a 25 basis-point cut in the benchmark

rate to 6.75%.

Poland's zloty edged up 0.1%, after its central

bank, which held rates steady earlier this week, said inflation

was expected to peak in the first quarter of 2025.

Markets also watched developments in the Middle East, where

according to sources Israeli Prime Minister Benjamin Netanyahu

decided to send a delegation to resume stalled negotiations on a

hostage release deal with Hamas.

The shekel strengthened 0.6% and Tel Aviv stocks

advanced over 1.5%, while crude prices were flat, with

Brent futures nearing $90 per barrel.

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