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While Greece remained a sore spot for the currency markets, signs that inflation has peaked in China generated a strong burst of relief — and upside — in Asian markets.

The euro was once again a loser as the Greek debt situation evolved in fits and starts and the European manufacturing environment faltered. A stronger dollar, meanwhile, left commodity prices weaker.

In fact, key commodity markets — oil and silver in particular — sold off last week, leading traders to conclude that once-pernicious commodity inflation was easing almost across the board.

For the long term, the demand factors favor oil, fertilizer and other natural resources. But this week at least, declining prices helped rekindle hopes that global growth is alive and well in emerging markets and worldwide.

In the BRIC markets, Brazilian stocks ended the week flat.

Stocks in Russia fell 1.1%, once again trading in tandem with massive gas producer Gazprom (OGZPY.PK), which alone accounts for a full 15% of the RTS index.

In India, stocks rebounded up 2.0% on hopes that once-dangerous levels of inflation are now on the defensive.

And in China, stocks surged 3.9% after manufacturing numbers gave traders hope that inflation in that country has reached its peak.

Source: Emerging Markets Week in Review