Emerging Market Stocks Hold Gains as Investors Await Warsh Speech

Emerging market stocks and currencies held gains as investors waited for Federal Reserve Chair Kevin Warsh to speak at Jackson Hole for signals on the inflation outlook and interest-rate path. According to Sina Finance, the MSCI Emerging Markets equity index was little changed after rising for three straight trading days, while the MSCI Emerging Markets currency index rose 0.2% for an eighth consecutive day to a record high. Warsh has rarely offered forward guidance, leaving markets uncertain about the Fed's next move. According to Sina Finance, long-term bond yields have risen on inflation concerns, and investors will closely watch the speech for clues on the interest-rate outlook and plans for reforms to the Fed's policy framework. Maybank FX strategist Sean Lim said he expects Warsh to reveal little, given his usual reluctance to provide forward guidance. According to Sina Finance, Lim added that any substantive hawkish or dovish guidance could trigger sharp market swings. Indonesia's stock market rose to a more than three-month high as concerns eased over an escalation in protests in the capital. According to Sina Finance, South Korea's benchmark index fell about 1.5% as semiconductors dragged on the market, and early enthusiasm for the AI trade faded after Nvidia issued upbeat earnings guidance. The won climbed to its strongest level in more than a year as local exporters sold dollars at month-end. According to Sina Finance, capital inflows lifted Taiwan's stock market, while the Philippine peso was the weakest performer, nearing a record low and falling below the closely watched 62 pesos per dollar level.