Equities Await U.S. Inflation as Tariff Truce Boosts Asian Markets
Emerging market equities and currencies remain stable, awaiting a U.S. inflation report, while Asian stocks gain from a U.S.–China tariff truce extension. Markets are sensitive to potential tariff-driven inflation, impacting Fed's interest rate decisions. Notably, Ukraine sees gains in international bonds amid geopolitical developments.

Emerging market equities and regional currencies showed little movement on Tuesday as investors awaited a crucial U.S. inflation report. Meanwhile, Asian stocks experienced gains due to a positive shift in sentiment following the extension of the U.S.–China tariff truce.
The MSCI global emerging market equity index stayed steady at 1255.65, with a correspondent index for currencies also maintaining stability. Noteworthy increases were observed in China's blue-chip CSI300 and the Shanghai Composite indices, each rising by 0.5%.
As geopolitical tensions continue to play a role, early signals of tariff-driven price pressures from U.S. policies are being monitored closely. Markets are also responding to currency movements and geopolitical updates, such as Ukraine's international dollar bonds rising amid potential territorial negotiations.
(With inputs from agencies.)
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