EMERGING MARKETS-Emerging markets equities steady as US government shutdown end nears

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EM stocks flat, FX down 0.09%

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Hungary raises 2025, 2026 budget deficit targets to 5% of GDP

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Hungary's October inflation stable at 4.3% y/y, below forecast

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Romania's interest rate decision later in the day

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Czech CPI at 2.5% y/y in October

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Polish stock market closed for Independence Day

By Nikhil Sharma

Nov 11 (Reuters) - Emerging market stocks were largely steady on Tuesday, with sentiment aided by progress toward ending the prolonged U.S. government shutdown, while investors also looked ahead to Romania's interest rate decision later in the day.

A broad gauge of emerging market stocks was stable at 1400.69 points after soaring 1.3% in the prior session, taking cues from risk-taking sentiment across global markets.

Separately, a parallel index for EM currencies also nudged down 0.1% following modest gains on Monday.

Despite a fade in the risk-on rally, markets stayed resilient after the U.S. Senate on Monday approved a compromise to restore federal funding and extend it through January 30, ending the longest government shutdown in U.S. history.

Asian emerging economies extended their run, with Singapore's FTSE Straits Times index advancing over 1% to hit an all-time high.

"The prospects of the end to the government shutdown are equating positively across the global financial markets, and this is what we saw yesterday," said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.

"Today, we see that the positive impact of yesterday is fading because we don't have more fresh news about the US story. But it looks like the end of the US government shutdown would send a positive wave across the global financial markets."

In Central-Eastern Europe, the Hungarian forint dropped 1% after gains in the previous session, following Hungary's one-year exemption from U.S. sanctions on Russian energy secured during a meeting between Prime Minister Viktor Orban and U.S. President Donald Trump.

Orban, who faces what analysts say could be a closely fought election next year, also brokered an agreement that could include cooperation on swaps, a loan facility, a development bank credit, or infrastructure financing amid an EU funding freeze.

Meanwhile, data showed the annual inflation rate stabilised at 4.3% in October, below the forecast, building an argument for policy easing in the country.

According to the news website telex.hu, Hungary's government raised its budget deficit targets to 5% of economic output for both 2025 and 2026.

Budapest stocks lost 0.94%, on pace for its worst single-day fall in nearly two months.

The usually quiet markets in Romania were also in focus as the country braced for an interest rate decision later in the day. Analysts expect the central bank to keep its benchmark rate on hold at 6.50% amid price pressures triggered by higher taxes and energy prices.

Romanian leu traded with caution, while Bucharest stocks rose 0.64% to hit a record high.

The Czech koruna was flat, while Prague's main stock index edged up 0.57% to a new high after annual inflation rate remained stable at 2.5% in October, bringing in a sign of relief after its central bank projected upside price risks from wage growth and potential government spending.

Additionally, the Polish zloty was stable, while Warsaw's benchmark index was closed for Independence Day.

Elsewhere in EM, the Thai baht weakened 0.25% against the U.S. dollar. Thailand's government confirmed on Tuesday that it would halt the implementation of an enhanced ceasefire agreement with Cambodia.

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see (Reporting by Nikhil Sharma in Bengaluru, Editing by William Maclean)