*

Russia-U.S. talks begin in Riyadh

*

South Africa's unemployment rate falls in Q4

*

China calls for tariff debate at WTO

*

MSCI FX off 0.1%, stocks advance 0.7%

By Purvi Agarwal

Feb 18 (Reuters) - A rising dollar pressured most

emerging market currencies, though stocks gained on Tuesday,

while investors remained focussed on talks between Russia and

the U.S. that could bring an end to Moscow's war in Ukraine.

MSCI's index tracking global EM currencies

retreated from an over three-month high, as the dollar index

moved higher after three consecutive sessions of

declines.

However, the stocks index has risen over 9.5%

since January 13, as tech optimism around Chinese AI drove gains

in Asian shares broadly, boosting the index.

Markets are watching a meeting between U.S. and Russian

officials in Riyadh for the most significant talks to date on

ending the Russia-Ukraine war.

Ukraine, which is not attending, says no peace deal can be

made on its behalf, adding some uncertainty to the event.

The currency in Russia and bonds in Ukraine rallied last

week on hopes of a peace deal after U.S. President Donald Trump

said he had separate phone calls with Russian and Ukrainian

leaders.

The Russian rouble was 0.4% higher on the day.

Optimism around the peace talks also boosted European stock

indexes broadly, with the ones in Poland trading at an

over seven-year high. Prague stocks pulled back slightly

from a record high logged in the previous session.

"There are no guarantees that a deal will be reached to end

the war during talks in Saudi Arabia. These do not include

Ukraine, and some in Europe think that Trump's efforts will

embolden Putin and could prolong the war," said Kathleen Brooks,

research director at XTB.

"We are still in the very early stages of any potential

negotiations, updates from today's meetings will be worth

watching closely."

Any comments from U.S. Secretary of State Marco Rubio's

visit to the Middle East will also be parsed through, including

plans for Gaza made with Saudi Crown Prince Mohammed bin Salman.

Israel's shekel was 0.2% lower, while stocks

were 0.6% higher.

Emerging Europe currencies were subdued against the euro

.

South Africa's rand gained 0.2% in choppy trading and

stocks in the country were hovering near record highs.

Data showed official unemployment rate in South Africa fell in

the final three months of last year.

Meanwhile, tariff headlines have taken a backseat, with

Trump providing a short respite, leaving room for negotiations.

China called for a debate at the World Trade Organization on

"trade turbulence" and how the global trade watchdog should

respond in an apparent reference to the tariffs.

HIGHLIGHTS:

** How a Moscow-linked influence campaign sought to erode

German support for Ukraine

** Xi's new frontline corporate guard showcases his

priorities, control

** Sri Lanka's budget likely to lead to slower fiscal

consolidation, Moody's says

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see