*

Trump to decide soon on possible exclusion of oil imports

from

Feb 1 tariffs

*

Romania's 2025 budget to target a 16% rise in revenue

*

IMF managing director to visit Ethiopia

*

MSCI EM FX down 0.3% , stocks off 0.2%

By Purvi Agarwal

Jan 31 (Reuters) - Indexes of emerging market currencies

and stocks were lower on Friday with investors bracing for a

Feb. 1 deadline for U.S. tariffs as a week marked by increasing

trade tensions and a slew of central bank decisions drew to a

close.

In his latest comments on tariffs, U.S. President Donald

Trump said on Thursday he would soon decide whether to exclude

Canadian and Mexican oil imports from the 25% tariffs that he

has vowed to impose on Saturday. Trump also said he was still

considering new tariffs on Chinese goods.

The Mexican peso, among the most exposed to tariffs,

was up 0.2% in early trading, after logging losses of nearly 1%

in the previous session.

Threats of tariffs, combined with increasing prospects of

interest rates in the world's largest economy staying higher for

longer continue to pressure riskier EM assets globally, as they

also tackle an uncertain growth outlook.

"Markets have been pricing in a more favourable Trump

scenario. Now that we see him getting a bit more aggressive,

uncertainty is filtering into global markets," said Aneeka

Gupta, director of macroeconomic research at WisdomTree.

"We could see further volatility coming in once we see those

announcements come into play tomorrow."

Despite uncertainty, emerging market debt notched inflows of

$1.4 billion in the week through Jan. 29, the biggest inflow in

two years, according to Bank of America's flow show, while EM

stocks notched their first inflow in three weeks.

EM sovereign debt issuance this week amounted to $4.5

billion, putting year-to-date issuance about $3 billion below

this point last year, according to Morgan Stanley.

On the day, MSCI's index tracking global EM currencies

was down 0.3%, set for its third month of

declines. The stocks gauge was down 0.2%, but set for

its best month since September.

The Hungarian forint and the Polish zloty

slipped 0.6% and 0.3% against the euro, respectively.

The Czech economy grew by half a percent on a quarterly

basis in the fourth quarter of 2024, preliminary data showed.

The crown was slightly lower against the euro.

A draft proposal on Thursday showed that Romania's 2025

budget will target a 16% rise in revenue to 667.5 billion lei

($139.38 billion).

Fiscal decisions in Romania are closely watched after

ratings agencies such as Fitch and S&P cut their outlook for the

country to negative amid concerns of delayed cuts to its

deficit.

South Africa's rand was little changed, a day after

the country's central bank cut interest rates by 25 basis

points.

HIGHLIGHTS:

** Thai central bank says economy slowed in December

** IMF's managing director to visit Ethiopia for talks with

authorities

** Divided Ecuador presidential polls show likely win for

Noboa after runoff

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