(Updated at 0918 GMT)
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IMF agrees deal to give Ukraine access to $1.1 bln
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Romanian inflation eases to 5.1% in August
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Minutes from Hungary central bank's Aug meeting on tap
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Stocks off 0.3%, FX indexes flat
By Johann M Cherian
Sept 11 (Reuters) - Most emerging market assets were
subdued on Wednesday in cautious trade ahead of a U.S. inflation
report, while investors also focused on a dollar bond issue in
Nigeria and a pivotal legislative vote on judicial reforms in
Mexico.
MSCI's index tracking emerging market currencies
inched up 0.1%, against the dollar index's
0.2% dip, while an index tracking equities
slipped 0.3% to it lowest in over a month.
Focus will be on U.S. inflation data for August later in the
day before the Federal Reserve meets next week to decide on
monetary policy, with expectations high for a 25 basis points
rate cut.
Economic growth worries out of the U.S. and China have
weighed on investor sentiment recently, with the main MSCI EM
stocks index on track for its first monthly drop of over 3%
since January, if losses hold.
Meanwhile, after Tuesday's fiery U.S presidential debate,
betting platforms swung in favour of Democrat candidate Kamala
Harris over Republican Donald Trump. The former president's
polices are seen as inflationary and an obstacle to global free
trade.
"For now, indications that Harris won this debate, even if
by a small margin, can keep a lid on the dollar and generally
prompt a more favourable environment for currencies with a high
beta to protectionism and geopolitical issues," analysts at ING
bank said.
In Africa, Nigeria raised $900 million in its first ever
domestic dollar bond sale, according to the issue's coordinator.
Nigeria's naira slipped 0.8% relative to the euro,
while the yield on dollar bonds maturing in 2029
climbed 13 basis points.
In Latin America, oil exporter Mexico's peso
strengthened 0.7% after a more than 1% drop in the previous
session on weak crude prices.
The country's Senate gave general approval to a judicial
reform where judges would be elected by popular vote, which
critics fear could threaten the rule of law and damage the
economy.
Meanwhile, Ukraine's hryvnia was flat. The
International Monetary Fund said it had reached a preliminary
agreement that would give the war-torn country access to about
$1.1 billion in financial assistance.
In central and eastern Europe, Romania's leu was
muted against the euro after data showed inflation cooled to
5.1% in August from the previous month.
Hungary's forint ticked up 0.1% ahead of the
release of minutes from the central bank's August monetary
policy meeting, due at 1300 GMT.
In South Asia, the yield on Sri Lankan bonds maturing in
2025 slid 360 basis points, easing from a
recent jump as a nationwide election nears.