Emerging market stocks were set for weekly gains on Friday, capping off a turbulent week for global markets marred by the confusion over U.S. trade policy, while most currencies were stable ahead of a crucial U.S. jobs report.

MSCI's index for emerging market stocks dipped 0.3%, though it was on pace for nearly 3% weekly jump, mostly boosted by surging Chinese shares and Indian equities rebounding somewhat.

Chinese and Hong Kong shares were on a tear this week as investors' enthusiasm towards artificial intelligence continued to fuel the market, while beaten-down Indian shares were on track to advance for a third straight day on Friday.

Amongst currencies, Mexico's peso was last trading 0.1% higher against the dollar at the end of a week when headlines around tariffs moved the markets frequently.

On Thursday, U.S. President Donald Trump suspended tariffs of 25% he had imposed this week on most goods from Canada and Mexico, marking the latest twist in a fluctuating trade policy that has fanned worries about inflation and growth.

Attention now turns to a crucial U.S. jobs report due at 1330 GMT, which is expected to show job growth likely picked up in February, with the unemployment rate expected to hold steady at 4.0%.

"Investors will be keen for hard data to gauge how real the downside risks are, and there will be even more eyes than normal watching today's jobs data," said Max McKechnie, global market strategist at J.P. Morgan Asset Management.

"Markets are concerned about the growth implications of U.S. trade policy, and some investors, worried about the political direction, are starting to look to the Fed to step in and steady the ship."

Amid the growing concerns of a slowdown in the U.S. economy, traders currently see at least three 25-basis-point rate cuts by the Federal Reserve this year, according to LSEG data.

Remarks from Fed Chair Jerome Powell shortly after Friday's data are also on the radar.

Currencies in Central Eastern Europe (CEE) were broadly stable against the euro a day after the European Central Bank (ECB) cut its lending rate for the sixth time since June.

South Africa's rand appreciated 0.1% against the greenback in lead-up to the U.S. data, touching its highest in over 11 weeks.

A global bond sell-off abated somewhat in early European hours, with international bonds of Ukraine, Egypt, Ghana and Senegal - to name a few - all stabilizing.

German long-dated maturities were at the forefront of the sell-off this week after the parties in talks to form Germany's new government agreed to try to loosen its fiscal rules to increase defence and federal state spending and create a 500 billion euro ($535 billion) infrastructure fund.

EM equities recorded about $2.4 billion of inflows in the week till Wednesday while debt also recorded inflows for the third straight week, according to a Bank of America report.

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Aidan Lewis)