Most emerging market stocks perked up on Monday in line with a rise in U.S. stock futures as investors looked for developments on the tariff front, while Turkish assets recouped some of their losses after last week's rout.

Turkey remained front and centre amongst emerging markets after a Turkish court on Sunday jailed Istanbul Mayor Ekrem Imamoglu, who is President Tayyip Erdogan's main political rival.

Turkish assets though, were broadly higher on Monday after a dismal last week when news of Imamoglu's detention hit them hard.

The lira was last at 37.95 per dollar after hitting a record low of 42 last week, while local stocks added 3.2%, coming off their worst weekly showing since the 2008 global financial crisis.

Still, local stocks are down more than 14% from levels seen at the start of last week, while the lira is down more than 3%

Meanwhile, ahead of the April 2 deadline for U.S. reciprocal tariffs, two media reports stated that U.S. President Donald Trump's administration is likely to exclude a set of sector-specific tariffs.

"Investors hope that these tariffs will target specific industries, potentially mitigating damage throughout the global supply chain. This situation represents a case of 'less bad than feared'", said Jochen Stanzl, chief market analyst at CMC Markets.

Futures tied to the U.S. S&P 500 rose more than 1%, while MSCI's index for emerging market stocks added 0.5%.

Currencies and stocks in Central Eastern Europe (CEE) also had an upbeat start, with most currencies gaining ground against the euro and stocks in Prague climbing back up to record highs, up more than 1% on the day.

A busy week lies ahead for CEE central banks, with Hungary's central bank widely expected to keep its base rate steady at 6.5% - the European Union's joint-highest level - at new Governor Mihaly Varga's first policy meeting on Tuesday.

The Czech National Bank (CNB) is also likely to keep its main lending rate steady at 3.75% on Wednesday.

"In our view, both meetings should be positive for currencies," Frantisek Taborsky, EMEA FX & FI strategist at ING said in a note.

Hungary's forint overtook Brazil's real to stand as the best performing EM currency against the dollar so far this year, advancing almost 8%.

Most EM currencies have gained ground against the greenback in 2025, as the case of U.S. exceptionalism weakened amid the tariff uncertainty, while fears of an impending economic slowdown also spurred dollar weakness.

Turkey's lira and Indonesian rupiah, however, have broadly failed to cash in on the rally with both down against the greenback so far this year.

On Monday, South Africa's rand appreciated 0.2% against the dollar early on, while Russia's rouble also firmed 1.1% in over-the-counter trade.

In Asia, India's benchmark Nifty 50 and the rupee both returned to positive territory for 2025, reversing steep declines which saw the rupee at record lows against the dollar and local stocks falling more than 6%.

Over the weekend, ratings agency S&P upgraded Albania's credit rating to 'BB' from 'BB-', citing an improving fiscal position in the Western Balkan country.

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Toby Chopra)