Most emerging market currencies were largely subdued against the dollar on Friday, while stocks continued to decline in ​what could be the steepest weekly drop for both assets in more than two months.

MSCI's index tracking global EM stocks was down 0.3%, set ⁠to snap a six-week winning streak, its longest run in a year. The currencies equivalent was flat on the day, but on track ⁠for a ‌weekly decline.

The week has been punishing for EM equities in particular, as wild swings in precious metal prices and a sell-off in tech stocks caused a whiplash reaction in tech-exposed Asian EMs and resource-heavy markets in Latin ⁠America and South Africa.

"Though flows were for rotation away from tech into other sectors, broader markets sold off in the risk-off sentiment. The obvious question which arises is whether the ongoing events can translate into systemic risks," said Mohit Kumar, an economist at Jefferies.

"We had been in the diversification camp, away from U.S. tech, and favoured a broadening of the rally and ⁠into Europe and EM. Does it change ​our views? Not much."

On the day, bourses in South Korea and Hong Kong closed 1.4% and 1.2% lower respectively, after Amazon.com projected a 50% surge in capital ‍spending this year, amplifying concerns over investments in artificial intelligence.

Indonesian stocks came under pressure again, down 2.1%, after Moody's lowered Indonesia's credit rating, citing reduced predictability in policymaking.

Indonesia's ​five-year credit default swap spread, or the cost of insuring against a default, climbed to a 15-month high.

The continued volatility in equities dampened sentiment across emerging Europe, with bourses in Hungary and Romania down 0.2% and 1.2% respectively.

Polish stocks were set for their ninth consecutive week of gains. Central banker Henryk Wnorowski said the likelihood of an interest rate cut in March seems quite high, as the bank awaits new inflation forecasts next month.

South African stocks gained 0.3%, driven by an uptick in gold prices, while Turkish stocks slipped 0.5%.

Still, BofA's Flow Show data showed that inflows into EM equities had resumed this week, at $7.8 billion, and outflows resumed from EM debt instruments.

Asian currencies were subdued to slightly higher against the dollar, while the Turkish lira slipped 0.2%.

South Africa's rand appreciated 1%, briefly ⁠touching its highest level in more than two weeks. South Africa signed a framework economic ‌partnership agreement in China, which it described as a step towards securing duty-free access to the Chinese market.

Currencies in emerging Europe were largely subdued against the euro.

Fitch was scheduled to review its rating for the Czech Republic later on Friday.