NEW YORK, March 3 ― Emerging market stocks rose today and looked set to snap four weeks of losses, buoyed by prospects of a steady recovery in China and comments from a Federal Reserve official backing the case for slower interest rate hikes.

The MSCI EM equity index added 0.7 per cent, as a jump in China services sector activity added to hopes of a recovery in the world's second-largest economy and underpinned expectations of an ambitious 2023 growth target at China's annual parliament meeting this weekend.

After hitting a rough patch in February, the index was set to log a weekly gain of 1.6 per cent, with stocks in China up 1.7 per cent on the week.

"While growth in developed markets is expected to slow in 2023 from 2022, growth in emerging markets is expected to improve in aggregate, supporting investors,” said Shaun Murison, a senior market analyst at IG.

Giving some respite to equities hammered in recent weeks by worries about US interest rates staying higher for longer, Atlanta Fed President Raphael Bostic advocated for a "slow and steady” monetary policy path going forward.

Regional currencies also rose 0.3 per cent against a softer dollar.

The Turkish lira was down against the dollar. Turkey's annual inflation fell slightly to 55.18 per cent in February, just below forecasts, following massive earthquakes that hit its southeast region.

South Africa's rand inched 0.3 per cent higher, helped by a weaker dollar and strong Chinese data. South African private sector activity stabilised in February after a sharp drop in the previous month.

Russia's rouble weakened against the dollar at 75.41. The country's service sector returned to growth for the first time in five months in February as client and new business increased, boosting firms' optimism for 2023.

In central and eastern Europe, the Hungarian forint slid 0.3 per cent against the euro, ahead of a review of the country's credit rating by Moody's Ratings.

The Czech crown was down 0.2 per cent versus the euro after data showed the domestic economy fell a little sharper than expected in the fourth quarter. Fitch Ratings is due to give out its credit rating review on the country later in the day.

A Reuters poll found the Czech crown and Hungarian forint's winning runs are losing momentum and set to retreat over the coming months.

Elsewhere in emerging markets, Adani shares surged after a US$1.87 billion investment in the group by GQG Partners Inc eased concerns about the group's ability to attract funding, while the conglomerate lined up more road shows to shore up investor confidence. ― Reuters