EMERGING MARKETS-Stocks edge up, currencies subdued as dollar firms; Nvidia results due

• EM stocks up 0.1%, FX flat
• US consumer confidence beats expectations
• South Africa's interest rate decision due on Thursday

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.

Reflecting the cautious sentiment, the MSCI index of emerging market currencies .MIEM00000CUS was flat while its equity counterpart .MSCIEF nudged 0.1% higher.

Stocks in central and eastern Europe .MIME00000PUS climbed nearly 0.2%, though most CEE currencies softened marginally against the euro.

Romania's leu EURRON= bucked the trend, gaining as much as 0.3%, while Bucharest's stock market .BETI 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 .WIG20 was flat, while the zloty EURPLN= 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 EURHUF= 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. FRX/

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.O, due after the U.S. market close – a release keenly watched for its broader market implications.

Further afield, the South African rand ZAR= 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 .JTOPI managed a 0.3% gain.