EMERGING MARKETS-FX, stocks jump after Iran-Israel ceasefire revives risk appetite

By Purvi Agarwal

June 24 (Reuters) - Most emerging market currencies and stocks recovered on Tuesday, as investors heaved a sigh of relief after a ceasefire between Israel and Iran allayed fears of a broader conflict in the Middle East.

U.S. President Donald Trump said that a ceasefire was accepted by the warring countries and was in effect, after Iran's strikes on U.S. bases in Qatar on Monday ramped up fears of an escalation in the conflict.

However, some caution remained after Israel ordered new strikes on Tehran in response to alleged attacks, violating the ceasefire, which were denied by Iran.

Markets still took the halt in hostilities in stride, with Israeli stocks .TA125 gaining 1.3%, while its shekel IRS= strengthened 1.4% to an over two-year high against the falling dollar. Dollar bonds in Israel were broadly higher.

The Turkish lira TRYTOM=D3 was flat against the dollar, while its stocks .XU100 gained 2.4%. Ones in Saudi Arabia .TASI were 1.5% higher and its dollar bonds gained marginally.

"An isolated incident like this (ceasefire violation) is not signalling something of a wider resumption of hostilities and that's why the reaction has been so limited," said David Morrison, senior market analyst at TradeNation.

"Investors are breathing a huge sigh of relief and are really hopeful because, if the missions have done its job and set Iran's nuclear program back, that brings some security and stability to the region."

The 12-day long conflict saw tit-for-tat attacks between Israel and Iran, with oil prices soaring, as Tehran mulled closing the Strait of Hormuz, an important oil transportation corridor.

On the day, oil prices dipped over 5% as the ceasefire came into effect. O/R

MSCI's index of EM currencies .MIEM00000CUS was up 0.7%, headed for its biggest single-day percentage gain since early May, as the dollar slipped.

South Africa's rand ZAR= appreciated 0.9%. The euro, however, gained on the dollar weakness, keeping moves in emerging European currencies largely flat.

The Hungarian forint EURHUF= was flat, ahead of a local monetary policy meeting where the central bank is widely expected to hold rates at 6.5% for the ninth time.

Most regional stock bourses jumped, with MSCI's global equity gauge .MSCIEF soaring 2.3%, and on track for its sharpest percentage gain since April 10.

Heavyweight Asian stocks gained, with ones in China .CSI300, .SSEC and Hong Kong .HSI closing up 1.2% and 2.1% respectively, while ones in Poland .WIG20 and Hungary .BUX rose 1.8% and 1%, respectively.

Stocks in South Africa .JTOPI were also 0.8% higher.

On the day, confidence data in the U.S. will be watched for signs on how the U.S. consumer is taking in the incoming impact of Trump's tariffs.

HIGHLIGHTS:

** IMF says Bangladesh to receive $1.3 billion under third and fourth reviews

** Thai PM assures ruling coalition is stable as dispute with Cambodia escalates

** Bank of Korea deputy chief says desirable to introduce stablecoins gradually

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