In this Oct 11, 2022 file photo, people shop at a crowded market ahead of Diwali, the Hindu festival of lights, in the old quarters of Delhi, India. (ANUSHREE FADNAVIS / REUTERS)

Policymakers in Asia and Africa voiced growing economic optimism at a Reuters conference on Wednesday, chiming with a rally in emerging markets, an expected slowdown in US rate hikes and an easing of COVID restrictions in China.

Finance ministers from India and crisis-stricken Sri Lanka and Zambia all gave upbeat outlooks at the Reuters NEXT event, on a day when emerging market shares were set to notch up their best month since May 2009.

South Korea's central bank governor also struck an optimistic note in an interview aired at the conference, a mix of virtual sessions and an in-person event in New York.

READ MORE: S&P Global lowers 2023 growth forecast for emerging markets

Governor Rhee Chang-yong revealed that the bank expected its policy rate to peak at around 3.5 percent in the current business cycle, a short hop from the current level of 3.25 percent.

The prospects of slowing rate rises and inflation in the US may have revived some spirits in emerging markets, but they have yet to brighten the mood in Europe and the UK

He also said a reopening of China could propel the South Korean economy in 2023.

That remark lined up with global miner BHP Group Chief Executive Mike Henry, who told the conference that China looked set for continued economic growth over the next 20 years.

Indian Finance Minister Nirmala Sitharaman forecast a "very good" economy ahead of 2024 national elections, fuelled by capital spending. Growth is officially seen at around 6.8 percent-7 percent for the year to March 31, in line with pre-pandemic rates.

Sri Lanka, which collapsed this year into its worst financial turmoil since independence from Britain in 1948, aims to restore growth to pre-crisis levels in 2026.

State finance minister Shehan Semasinghe also said the nation was intent on meeting a December deadline to present plans to help unlock an International Monetary Fund bail-out.

Zambia, which defaulted on its sovereign debt in 2020, aims to complete its restructuring of nearly $15 billion of external debt in the first quarter of 2023, Finance Minister Situmbeko Musokotwane said. 

ALSO READ: Asia is exception as emerging markets start to look fragile

The prospects of slowing rate rises and inflation in the United States may have revived some spirits in emerging markets, but they have yet to brighten the mood in Europe and the United Kingdom.

Tightening financial conditions and the prospect of an economic recession are going to be a toxic brew for European shares going into 2023, according to a Reuters poll of fund managers and strategists.