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Stocks up 0.4%, currencies gain 0.1%

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Taiwanese equities hit record high

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South Africa's Aspen Pharmacare climbs after deal

By Niket Nishant

Dec 29 (Reuters) - Emerging market stocks rose at the

start of the final week of 2025, boosted by strength across

Asia, even as end-of-year holidays reduced liquidity and slowed

global trade.

The asset class is set for its best year since 2017, ‌with

few catalysts expected this week to stall its momentum.

However, investors are weighing conflicting factors for next

year, including whether policy support can boost ​local demand in

China.

Nerves are also frayed by the prolonged diplomatic effort that

has yet to produce ‍a Russia-Ukraine ceasefire.

MSCI's equities index for emerging markets rose

0.4% on Monday ⁠and is on track ⁠to end the year with nearly 30%

in gains.

A HIGH BAR SET FOR 2026

"Looking ahead, the performance obviously sets a very high

bar ‌to replicate," said Kamakshya Trivedi, chief foreign

exchange and ​emerging markets strategist at Goldman Sachs.

"But some of the tailwinds present in 2025 are going to

repeat in 2026, so we still expect good returns after a great

2025."

The ⁠yuan slipped slightly against the dollar, and ‍was set

for a ​second straight session of losses after state-run media

warned against rapid gains in the currency.

Chinese stocks were mixed, with the Shanghai Composite index

on track for its longest winning streak ‍since September

last year, while the blue-chip CSI300 index fell 0.4%.

The finance ministry said on Sunday that fiscal policies

will be more proactive in 2026.

Taiwan's equities benchmark rose 0.9% and hit a record

high, defying concerns sparked by Chinese live-fire drills

around the island.

South Korean stocks also gained 2.2%, scaling levels

last seen in early November. The won rose 0.7%

against the dollar, extending a recent run.

The MSCI's regional ​currency gauge ‍inched

0.1% higher.

SOUTH AFRICAN STOCKS, CURRENCIES PAUSE RALLY

South African shares dipped 0.1% after a rally of 3.7%

over the last six sessions. The rand also softened 0.3%

against the dollar, as ​the prices of major exports, such as gold

and platinum eased.

Shares of Aspen Pharmacare climbed 22% and touched

their highest in over four months after the company said it will

sell its major Asia Pacific assets, excluding those in China, to

Australian private equity firm BGH Capital for A$2.37 billion

($1.59 billion).

Equities were flat in Turkey, where data due next week

is expected to show the annual inflation rate dipped in

December, according to a Reuters poll.

Investors are ​also tracking geopolitical developments

heading into next year.

U.S. President Donald Trump said on Sunday that he and Ukrainian

President Volodymyr Zelenskiy were "getting a lot closer" to an

agreement to end the war in Ukraine, while acknowledging that a

few "thorny issues" around territory must ‍be resolved.

Most of Ukraine's dollar bonds traded slightly higher.