Emerging European currencies strengthened Tuesday, tracking the euro's strong gains amid market optimism.

Markets are still waiting for agreements on a Greek debt-restructuring deal with private-sector creditors and a bailout agreement for the debt-strapped country. A meeting among Greek Prime Minister Lucas Papademos and the three party bosses supporting his coalition government over the new loan deal was pushed back, for the second time, to Wednesday. Still, the euro and emerging European currencies strengthened.

"Market sentiment is reflecting confidence in the view that this is a delay rather than a breakdown in the process to an agreement on the terms of the bailout," said senior currency strategist Stewart Gall of RBC Dominion Securities, in a note.

Emerging currencies, such as the Hungarian forint and Turkish lira, made decent gains Tuesday, while Latin American currencies were little changed on the day. Emerging-market sovereign-debt also firmed, in line with the upbeat market tone.

But analysts warned that the recent rally for emerging markets is vulnerable to event risks ahead.

"This whole move is very vulnerable to a correction to the downside," said Carolin Hecht, strategist with Commerzbank.

Emerging-market sovereign debt strengthened, with the spread on the J.P. Morgan Emerging Markets Bond Index Global, or Embig, tightening by eight basis points to 382 basis points over Treasurys. In price terms, the index slipped 0.1%. Hungary outperformed, as its spread narrowed by 27 basis points to 552 basis points over Treasurys, while its index jumped 1.1%.

Emerging-market debt issuance continued Tuesday, keeping up a steady pace of supply for 2012.

Hong Kong property giant Henderson Land Development Co. (HLDCY, 0012.HK) sold a $400 million five-year global bond at 99.215 to yield 4.929%, according to a term sheet seen by Dow Jones Newswires. Henderson Land MTN Ltd. was the issuer of the offering, which is guaranteed by Henderson Land Development Co.

Abu Dhabi-based Dolphin Energy, a regional natural-gas production and pipeline company, also tapped international markets with a new 10-year bond Tuesday, the first benchmark-sized conventional issue this year from a Gulf Arab company, according to bankers familiar with the deal.

Among currencies, the Hungarian forint outperformed, edging up 0.8% against the euro, which traded at HUF290.27 late Tuesday, according to CQG. Because Hungary's government has appeared "more diplomatic" regarding the International Monetary Fund's request for reforms, the forint has been able to slip back into its role as a currency that is "able to trade with wider market sentiment," Commerzbank's Hecht said.

The Turkish lira advanced 0.5% against the dollar, while the Polish zloty firmed 0.4% versus the euro. The Russia ruble, on the back of strong oil prices, advanced against the dollar, which weakened 0.9% to RUB29.825 late Tuesday.

Major Latin American currencies, however, were little changed against the dollar. The Brazilian real was steady around the BRL1.72 level against the dollar, as Brazil's central bank stayed out of the market Tuesday after intervening in the two preceding sessions. The Mexican peso was also nearly flat on the day, after paring its earlier gains.

-By Erin McCarthy, Dow Jones Newswires; 212-416-2712; erin.mccarthy@dowjones.com @djfxtrader

--Nikhil Lohade and Asa Fitch contributed to this article.

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