EMERGING MARKETS-Stocks, FX subdued as investors weigh trade risks, Trump's Fed offensive

By Pranav Kashyap and Johann M Cherian

April 22 (Reuters) - Emerging market stocks were mixed on Tuesday, as President Trump's unyielding critique of the Federal Reserve rattled investor confidence, adding to fears that a simmering trade war could plunge the global economy into recession.

The MSCI Emerging Markets Index .MSCIEF was flat, and a similar currency gauge .MIEM00000CUS fell 0.2%.

Turkey's lira TRYDOM=D3 dipped 0.1% and Russia's rouble RUB= slipped 0.1%, while Hungary's forint EURHUF= fell 0.4% against the euro.

Trump ramped up his criticism of Fed chief Jerome Powell on Monday, calling him a "major loser" and demanding that he lower interest rates "NOW" or risk an economic slowdown.

As the Fed's influence shapes global monetary policy and buttresses confidence in U.S. assets, concerns over its independence add a new twist to the drama sparked by Trump's trade war.

"President Trump is intensifying pressure on Federal Reserve Chair Jerome Powell to cut rates 'now', threatening one of the foundations of the dollar’s appeal as a global reserve currency," said ING analysts.

"The reaction to Trump’s comments on the Fed indicates how sensitive markets are to the topic of Fed independence, and we believe this adds a new layer of bearish bias on the dollar."

In the latest tariff gambit, U.S. finalised steep tariff levels on most solar cells from Southeast Asia.

Earlier in the day, gold prices XAU= surged past $3,500 per ounce. The South African rand ZAR=, whose moves are closely tied prices of the safe-haven asset, rose 0.8%.

Central banks of developing economies are trying to balance cutting interest rates to shore up their respective economies, while also ensuring their currencies are stable.

India's benchmark indexes .BSESN, .NSEI advanced as investors capitalized on financial stocks, following the central bank's decision to ease the deposit buffer rate for lenders .BO.

Investors are keenly watching U.S. trade negotiations with India, as U.S. Vice President JD Vance, is on his second day of a four-day visit to India.

The country also imposed 12% temporary tariffs on steel imports to protect local producers from a surge in cheap imports, chiefly from China.

Other countries such as South Korea, Japan, Vietnam and Thailand are currently looking to negotiate tariffs with the U.S.

Poland's zloty EURPLN= fell 0.4% against the euro. The local central bank reported a loss in 2024 due to costs related to monetary policy.

Ukraine's international dollar bonds XS2895057177=TE, XS2895057334=TE climbed approximately 0.5 cents each, following Russian President Vladimir Putin's announcement on Monday expressing openness to direct peace talks with Kyiv.

Zambia's kwacha EURZMW= declined 0.1% against the euro. A report said the country is expected to sign final bilateral debt-revamp deals by September.