NEW YORK, March 6 — Emerging market stocks rose today as US Treasury yields dipped ahead of commentary from Federal Reserve Chair Jerome Powell later in the week, but gains were limited as a modest 2023 growth target by China disappointed investors.

The MSCI EM equities index started the week on a positive note, rising 0.6 per cent, with investors awaiting Powell’s testimony to Congress tomorrow and Wednesday for an update on the central bank’s monetary policy path.

The index hit a rough patch in February as signs of economic resilience in the United States stoked concerns of more rate hikes by the US central bank, but recent commentary from some Fed officials has calmed jitters, leading to a pullback in US Treasury yields.

Bucking the trend today, stocks in China slid 0.5 per cent after the world’s second largest economy set a modest target for 2023 GDP growth of around 5 per cent yesterday as it kicked off the annual session of its National People’s Congress.

It was at the low end of expectations, as policy sources had recently told Reuters that a range as high as 6 per cent could be set.

“In particular, the central government (in China) probably doesn’t want to put too much pressure on local governments to boost economic growth given the financial stress they are facing,” said Tommy Wu, senior economist at Commerzbank.

“From a more cautious viewpoint, the unambitious growth target points to a more subdued outlook. It may also signal that the government is likely to implement more moderate policy easing than before.”

Regional currencies rose 0.1 per cent as the dollar index edged lower.

The Turkish lira was flat against the dollar with the main opposition alliance expected to announce their candidate to challenge President Tayyip Erdogan in the upcoming election later in the day.

South Africa’s rand edged 0.1 per cent lower against the greenback ahead of a cabinet reshuffle expected this afternoon, where President Cyril Ramaphosa is likely to name a new deputy.

In central and eastern Europe, the Hungarian forint was up 0.3 per cent against the euro. Calendar-adjusted retail sales in Hungary plunged 4.5 per cent year-on-year in January following a revised 4.1 per cent drop in December.

The Polish zloty was flat against the euro.

Elsewhere in emerging markets, Indian shares gained on Monday, with Adani group stocks extending gains after GQG Partners’ investment in the conglomerate last week. — Reuters