EMERGING MARKETS-EM FX, stocks broadly steady after rally; tech sell-off weighs on Asia

By Purvi Agarwal

Feb 4 (Reuters) - Emerging market currencies and stocks were subdued on Wednesday as investors took a breather following the previous session's rally, while commodity prices buoyed assets in some markets.

MSCI's gauge of global EM equities .MSCIEF was down 0.1%, after marking its biggest one-day jump since April on Tuesday.

EM assets have been roiled by a sharp plunge in precious metals and a slight recovery in the dollar after U.S. President Donald Trump's nomination of Kevin Warsh for the head of the Federal Reserve.

Heavyweight Asian stocks traded largely mixed on Wednesday, as a sell-off in software stocks globally triggered by AI firm Anthropic launching workplace productivity tools raised concerns over disruption across the sector.

Tech stocks in Hong Kong and India declined, while a broader market rally kept indexes in South Korea .KS11 and Taiwan .TWII afloat.

Regional European bourses were also higher, with those in Poland .WIG20 and Romania .BETI up 0.1% and 0.3% respectively, while Hungarian stocks .BUX jumped 1.5%. Turkey's main index .XU100 was muted.

South African equities .JTOPI, which have largely capitalized on the stellar rally in gold prices this year, added another 0.5%, as bullion prices hovered back to $5,100 per ounce. GOL/

"The recent bout of precious metals volatility has threatened to curtail the performance of heavily positioned global assets... the FX carry trade is most exposed," said Geoff Yu, EMEA macro strategist at BNY.

"If prices continue to struggle for metals, the markets with the strongest direct linkages will also continue to struggle."

Emerging market currencies were largely subdued, with MSCI's measure .MIEM00000CUS down 0.2%.

Turkey's lira was little changed against the dollar, while South Africa's rand ZAR= inched 0.1% lower.

Africa Export-Import Bank (Afreximbank) said it has lined up an initial $8 billion financing package for new member South Africa.

Poland's zloty EURPLN= was flat ahead of a monetary policy decision in the country, where the central bank is expected to hold interest rates.

Russia's rouble RUB= dipped 0.2% against the U.S. dollar, over-the-counter market data showed.

India's trade minister said the country will diversify its energy sources as a strategy amid changing global circumstances and to ensure energy security for its citizens.

The news comes days after the U.S. said New Delhi will halt Russian oil purchases, which could heavily impact Russian oil revenue.

Meanwhile, Trump on Tuesday signed a law extending a preferential trade program for Africa through December 31, effective retroactively from September 30, 2025, the chief U.S. trade negotiator said.

HIGHLIGHTS:

China services activity picks up in January, hiring hits 6‑month high, survey shows

South Korea eyes dollar bond issuance for pension fund this year: Reuters

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For TURKISH market report, see .IS

For RUSSIAN market report, see RU/RUB