Nov 13 (Reuters) - A tepid dollar and hopes of progress in the U.S.-China trade dispute helped emerging-market currencies gain on Tuesday, while stocks recovered from earlier losses as U.S. futures pointed to a higher open on Wall Street after its sell-off overnight.
The MSCI emerging currency index was steady after reports that China and U.S. resumed high-level discussions and the dollar retreated from highs reached on the Federal Reserve’s hawkish stance and weakness in European currencies.
The South China Morning Post reported that China’s top trade negotiator, Liu He, may visit Washington to prepare for talks between U.S. President Donald Trump and Chinese President Xi Jinping at a G20 summit in Argentina later this month.
“Whenever we get these small hints that there are some positive signs from the trade war, it is of course positive for both emerging-market currencies and stocks” said Morten Lund, an analyst at Nordea Markets.
The Chinese yuan scored its biggest intraday gain in a week, as major state-owned banks stepped in to pull the currency from near-decade lows.
The South African rand snapped a three-day losing streak to rise by 0.1 percent, in line with stocks, which rose 0.26 percent.
The Russian rouble rose as exporters bought the currency to make monthly tax payments due November 15.
The Indian rupee and Philippine peso benefited from falling oil prices. Brent crude slid below $70 per barrel after Trump put pressure on OPEC not to cut supply.
The Turkish lira extended losses after the country’s current account surplus came in below forecasts on Monday. The emerging-market stock index inched higher as most stocks pared losses, led by mainland China equities , which closed higher for a second straight session.
Other Asian markets trimmed losses after tracking a sell-off on Wall Street overnight. Apple shares fell after several suppliers to the company cut their forecasts.
“We have Japan closing off lows and more importantly S&P futures coming back from being down,” said Kay Van-Petersen, a global macros strategist at Saxo Markets.
Stocks in Turkey and India rose between 0.8 percent and 1 percent.
But Apple’s supplier worries weighed on both Taiwanese and South Korean stocks, which fell between 0.4 to 0.6 percent.
The Polish zloty snapped a two-day losing streak after the central bank said it expects the currency to strengthen and gradually approach equilibrium.
Other Eastern European currencies remained little changed.
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For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see (Reporting by Agamoni Ghosh and Susan Mathew in Bengaluru; editing by Larry King)