* Taiwanese stocks at record high
* China left benchmark lending rates unchanged in June
* Colombian assets seen extending gains after De La
Espriella's victory
By Avinash P and Ragini Mathur
June 22 (Reuters) - Emerging market stocks climbed to a
record high on Monday, driven by AI-led gains in East Asian tech
and progress in Middle East peace talks, while Colombian assets
prepared to jump following a narrow presidential election
victory for right-wing candidate Abelardo De La Espriella.
MSCI's index of EM equities rose 0.9% to trade at
record high levels, led by Taiwan's benchmark surging
2.8% to a fresh peak, while South Korea's KOSPI climbed
0.7% to hover near Friday's all-time high.
The two tech-heavy markets, the largest components in the
MSCI gauge, have surged more than 110% and 60% respectively this
year, fuelled by stellar global demand for artificial
intelligence.
In Latin America, Colombian right-wing candidate Abelardo De
La Espriella clinched a narrow victory in Sunday's presidential
election, according to an initial ballot count.
U.S.-listed shares of Colombian companies gained in
premarket trading, with the Global X MSCI Colombia ETF
jumping 4.4%.
"The victory for right-wing Abelardo de la Espriella in
Colombia's presidential election should pave the way for more
pro-business policymaking, tighter fiscal policy and improved
relations with the U.S., which should support Colombian assets,"
said Kimberley Sperrfechter, senior emerging markets economist
at Capital Economics.
Broader global sentiment was also supported by diplomatic
progress in the Middle East, which helped oil prices to easeby
1.7%. A joint statement from mediating nations Qatar and
Pakistan said the U.S. and Iran have agreed to a roadmap toward
a final peace deal within 60 days following a successful first
round of talks.
In China, the CSI index advanced 2.4%, while the
Shanghai index gained 1.8%. As expected, China left its
benchmark lending rates unchanged for the 13th consecutive month
in June.
Meanwhile, EM currencies fell against a firmer U.S. dollar
. The broader EM currency index was down
0.3%, while the South Korean won declined 0.5% to a
two-week low.
Elsewhere, Turkish stocks rose 0.7% and the lira
firmed.
South African equities remained flat, while the
rand edged lower.
Central European currencies depreciated against both the
euro and the dollar.
"The CEE FX market is dominated by a stronger U.S. dollar,
similar to the rest of the EM space, following last week's Fed
meeting," said Frantisek Taborsky, EMEA FX & FI strategist at
ING. "We have seen some pressure on currencies in the region in
recent days."
Stocks in the CEE region were mixed. Hungary and
Romania edged higher by 0.6% and 0.4%, respectively, but
the Polish benchmark declined 0.3%.
Polish retail sales growth accelerated in May though it fell
short of analyst forecasts. Meanwhile, Polish corporate wages
rose by an annual 5.8% in May, below expectations for a 6.0%
rise.
HIGHLIGHTS:
** SK Hynix overtakes Samsung to become South Korea's most
valuable company
** China targets US rare earth and other firms with export
controls
** South Korea market watchdog offers rare mea culpa over
leveraged ETFs
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