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EM stocks up 0.1%, FX flat

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US consumer confidence beats expectations

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South Africa's interest rate decision due on Thursday

By Pranav Kashyap

May 28 (Reuters) - Emerging market assets were subdued

on Wednesday, with most stocks and currencies finding little

traction as the dollar firmed and anticipation built for results

from AI giant Nvidia ( NVDA ).

Reflecting the cautious sentiment, the MSCI index of

emerging market currencies was flat while its

equity counterpart nudged 0.1% higher.

Stocks in central and eastern Europe climbed

nearly 0.2%, though most CEE currencies softened marginally

against the euro.

Romania's leu bucked the trend, gaining as much as

0.3%, while Bucharest's stock market jumped almost 1%.

Data on Tuesday revealed Romania's consolidated budget deficit

reached 2.95% of economic output in the first four months of

2025.

Newly elected President Nicusor Da last week projected an

"optimistic, realistic" budget deficit target for Romania in

2025 at 7.5%, on the backdrop for a country precariously holding

onto its lowest investment-grade rating from S&P, Fitch, and

Moody's.

Poland's stock index was flat, while the zloty

retreated 0.1% with the nation on edge ahead of

Sunday's second-round presidential election.

A poll indicated Warsaw Mayor Rafal Trzaskowski holds a lead

over nationalist Karol Nawrocki.

Hungary's forint hovered just below two-week lows

plumbed in the prior session. The currency found some support

after the central bank, on Tuesday, held interest rates steady

while adopting a hawkish posture, citing upside inflation risks.

"The central bank confirmed a hawkish tone... is positive

for the HUF," said Frantisek Taborsky, EMEA FX & FI strategist

at ING.

"Although we maintain a more bearish view in the medium

term, we may see further gains in the short term."

Across the broader emerging market landscape, recent gains

in EM forex have primarily been fuelled by a softer dollar trend

earlier this month, a consequence of U.S. fiscal anxieties and

the unpredictable currents of U.S. President Donald Trump's

trade pronouncements.

However, the dollar found fresh impetus overnight following

surprisingly robust U.S. consumer confidence data. With that in

the rearview, investor attention pivoted squarely to the

impending quarterly results from AI bellwether Nvidia ( NVDA ),

due after the U.S. market close - a release keenly watched for

its broader market implications.

Further afield, the South African rand held its

ground ahead of the central bank's rate decision on Thursday,

with markets pricing in a widely anticipated 25-basis-point cut

to borrowing costs.

Johannesburg stocks managed a 0.3% gain.

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see

(Reporting by Pranav Kashyap in Bangalore; Editing by Mrigank

Dhaniwala)