Emerging market stocks and currencies pushed higher on Tuesday as investors found some encouragement in peace talks between Russia and Ukraine, while Chile's peso rose ahead of an expected interest rate rise by its central bank.

Latin American currencies firmed along with most other major emerging market units as Russian and Ukrainian negotiators met for direct talks for the first time in nearly three weeks.

Ukraine proposed adopting neutral status in exchange for security guarantees, meaning it would not join military alliances or host foreign military bases.

"Ukraine's president has said he is willing to discuss becoming a neutral country as part of a peace deal with Russia. Should a ceasefire agreement become reality, this could boost global sentiment further and revive investor confidence," said Lukman Otunuga, senior research analyst at FXTM.

The Russian ruble hit a one-month high against the dollar, rising more than 6% to a session high of 83.90, while stocks regained some ground in the fourth session since trading resumed after a near month-long suspension.

Russia said it was launching a buyback offer on its $2 billion sovereign Eurobonds maturing on April 4, its biggest debt payment of the year, and would make full payment to bondholders taking up the offer in roubles.

This comes after unprecedented Western sanctions called Russia's ability to service foreign currency debt into question. The sanctions have sparked a rally in commodity and raw material prices, benefiting exporter-heavy south and central American nations.

The MSCI's index for Latin American currencies has gained 7.2% in March and is on track for its biggest monthly percentage gain since June 2016.

Chile's peso firmed 0.8%, hitting its highest level in nearly seven months ahead of a 200 basis point rate hike anticipated in a central bank poll of traders ahead of its rate decision. Economists at Credit Suisse see a move by 150 basis points to 7.0%, adding that "the central bank will likely stick to its current pace of tightening."

Brazil's real rose 0.6% against the dollar, also heading for its largest monthly gain since June 2016, while Mexico's peso added 0.7% on Tuesday.