<div id="readability-page-1">* Stocks down 1.3%, currencies slip 0.1% * Thai baht on track to end 6-day win streak * Argentine FX takes centre stage By Niket Nishant Dec 16 (Reuters) - Emerging market stocks fell to a three-week low on Tuesday, with a solid year facing a subdued end as a trickle of U.S. data keeps investors on edge. The moves come as investors juggle several factors this week, including a slate of central bank decisions, revived worries about tech valuations and the aftermath of Chile's presidential election, reinforcing their tendency to remain on the sidelines before committing capital. MSCI's index of emerging market stocks slid 1.3%. The currencies gauge also slipped 0.1%, remaining trapped within recent ranges. However, expectations for regional currencies remain bright as a softer dollar boosts their appeal as an alternative for investors seeking higher returns. FRAGILE POLITICS CLOUD THAI PROSPECTS In Asia, the Thai baht fell 0.3%, set to snap a six-session winning streak after central bank Governor Vitai Ratanakorn said policymakers had acted to contain rapid gains in the currency. Investors have been watching developments in the country after it clashed with Cambodia over a border dispute and heads towards a snap poll in February. &#34;The next election likely does not result in any more coherent a coalition than the outgoing one and, therefore, the prospects of the structural reform Thailand needs,&#34; said Hasnain Malik, EM equity and geopolitics strategist at Tellimer Research. Thai equities slipped 0.9%. China's real estate shares extended their slide for the fourth consecutive day, falling 0.3%, while the blue-chip CSI 300 index dropped 1.2%. Sentiment has been shaky in recent days, especially as troubles at China Vanke revive concerns about the crisis-hit property sector. PEACE TALKS LIFT UKRAINE BONDS Ukraine's dollar-denominated bonds rose on signs of progress towards ending the country's war with Russia, after U.S. President Donald Trump said on Monday that an agreement is &#34;closer than ever&#34;. A breakthrough could be a major catalyst for global assets and ease investor jitters over other risks, such as anxieties about AI and a potential tech bubble. Still, investors have previously been caught wrong-footed by false positives and are unlikely to fully buy in until they see tangible evidence. &#34;Trump's envoys are claiming serious progress in the talks, but there are still no clear indications that the Kremlin is willing to accept conditions that would lead to a sustainable peace,&#34; said John Herbst, a former U.S. ambassador to Ukraine and the senior director of Eurasia Center at think tank Atlantic Council. ARGENTINA'S FX SHIFT Later in the session, attention will shift to Latin America, where Argentina's central bank said on Monday it would tie the peso's trading band to inflation, in a bid to build reserves and stabilize the economy. &#34;We view changes as positive. While not fully giving up for now on the demand for a fully floating FX regime, at least some FX flexibility is added,&#34; analysts at Morgan Stanley said. &#34;This decision will likely reduce tensions with the International Monetary Fund staff,&#34; they added. Earlier this month, the IMF said Argentina's policies will need to support a stronger accumulation of reserves. Markets will also be on watch for a deal between the European Union and the Mercosur group of Latin American economies. Italy and France want a final EU vote on the deal to be delayed, Reuters reported on Monday. (Reporting by Niket Nishant in Bengaluru and Marc Jones in London; Editing by Mrigank Dhaniwala)</div>

MSCI

Emerging market stocks fell to a three-week low, with MSCI's index down 1.3% and currencies slipping 0.1%. The Thai baht is set to end a six-day win streak amid political uncertainties. China's real estate shares continue to decline. Ukraine's bonds rise on potential peace talks progress. Argentina's central bank ties the peso's trading band to inflation, aiming to stabilize the economy. Investors remain cautious due to central bank decisions, tech valuation concerns, and geopolitical tensions.

EMERGING MARKETS-EM stocks sag as investors hunker down before US data