Equities across most developing markets edged up on Monday as crude prices dropped on a brief respite to geopolitical tensions in the Middle East, while investors also braced for the upcoming U.S. presidential election.

Crude futures lost over 5% to about $70 a barrel as Israel's response to Iran's missile attack over the weekend avoided oil and nuclear targets, relieving concerns of a wider conflict that could disrupt energy supplies - a crucial resource for developing economies.

"The prospect of a full-blown war between Iran and Israel may have diminished but it remains a significant source of geopolitical risk," said Elias Haddad, a senior markets strategist for Brown Brothers Harriman.

MSCI's index tracking bourses in emerging markets edged up 0.2%, while an index tracking currencies was flat.

The MSCI gauges had logged losses during the previous three weeks as uncertainty loomed about the implications next week's US elections can have on developing economies.

Currencies of net oil importers such as Philippines and South Africa edged up 0.5% and 0.2% respectively, while those of India and Turkey were little changed. Oil exporter Nigeria's naira depreciated 2%.

Israel's shekel appreciated 1.7%. The directors of CIA and the country's Mossad are expected to have met Qatar's prime minister in Doha on Sunday to begin negotiations for a short-term ceasefire between Israel and Hamas.

Meanwhile, Indian equities rose 1%, rebounding from four straight weeks in the red, following upbeat results from the financials sector.

South Korean stocks closed 1% higher as local battery suppliers of Tesla gained after the EV market leader's rally last week. Gains were also aided by LG Energy Solution's 2.3% rise following upbeat quarterly results.

Chinese blue chips closed up 0.2% and Hong Kong stocks were largely flat, as investors grew cautious ahead of key events next week, including a legislative meeting in Beijing and the U.S. election.

Local sovereign bonds were muted as investors showed no enthusiasm after the central bank launched a new lending tool ahead of the expiry of trillions of yuan in loans at the end of the year.

Georgian local currency bonds were little changed after the ruling pro-Russia Georgian Dream party received more than 54% of the vote in a parliamentary election. The U.S. and European Union called a full investigation into reports of violations to the vote.

Investors also monitored election developments in Bulgaria and Lithuania.