The MSCI emerging market index rose 0.6%, although some gains have since been reversed. The equivalent gauge for EM currencies was little changed from Friday.

Emerging market investors remain cautious ahead of the Federal Reserve's annual symposium in Jackson Hole this week, when Chairman Jerome Powell's speech could hint at a potential interest rate cut in September.

"There has been incredible resilience across all risk assets, leading to valuations becoming increasingly stretched," Deutsche Bank analysts led by Jim Reid wrote in a note.

Markets are pricing in a Fed rate cut of more than 100 basis points over the next 12 months despite expectations of rising inflation, Deutsche Bank said.

Given the wide divergence in positions between Moscow and Kyiv, “we expect the conflict to continue into next year,” a team led by UBS Global Wealth Management chief investment officer Mark Haefele said in a report.

"Any negotiating process will be delayed by a lack of trust and differences in desired outcomes," the UBS team said.