Emerging-market benchmarks for stocks and currencies posted modest gains during a holiday-thinned trading session, with the MSCI Emerging Markets Index increasing by 0.2%. Key contributors included stocks from the United Arab Emirates, particularly First Abu Dhabi Bank PJSC and ADNOC Drilling Co. However, trading volumes were significantly low, at 99.8% below the 30-day average. The currency index also rose by 0.2%, bolstered by the South Korean won and Polish zloty. Despite ongoing geopolitical risks, particularly related to the Middle East, analysts maintain a positive outlook for emerging markets. Cassidy Ainsworth-Grace, a macro strategist at Oxford Economics, noted that while tensions may escalate, the impact on global economic growth is expected to be limited. Earnings momentum for emerging markets is projected to remain positive, with analysts upgrading their target for the MSCI index to imply a 22% gain by April 2027. In currency markets, the South Korean won saw gains for a second consecutive day, while Hungary's forint showed volatility amid political developments.