EMERGING MARKETS-Stocks, FX rise on hopes of Mideast talks; Pakistani assets jump on Saudi support

By Johann M Cherian

April 15 (Reuters) - Most emerging markets rose on Wednesday as investors pinned their hopes on the likelihood that Iran and the U.S. would resume talks to end the Middle East conflict, while Pakistani assets surged as Saudi Arabia pledged financial support.

MSCI's index tracking stocks .MSCIEF rose 1.2% and was at its highest in over a month, while a currencies gauge .MIEM00000CUS edged up 0.1% as the U.S. dollar neared six-week lows.

Crude prices were steady at $95 a barrel, reflecting broader caution as the U.S. military halted sea trade in and out of Iran, drawing threats from Tehran.

Investors were also monitoring developments in Hungary after the centre-right TISZA party of Peter Magyar won a landslide victory in general elections over the weekend.

Magyar said that he would restore media freedoms after his cabinet takes power and will speak with oil company MOL MOLB.BU to ensure fuel security against the backdrop of the Mideast conflict.

Hungary's local stocks index .BUX added 0.7% and has gained over 15% this month as traders priced in the change in government ahead of elections. The forint EURHUF= slipped 0.1% against the euro, but is set for a monthly gain of 5.5% - its biggest since 2012. Hard-currency bonds XS2971937672=TE, XS2574267345=TE have also seen stellar gains.

The focus will now be on if and how soon the new government can implement fiscal reforms.

"There is certainly room for achieving cost savings from reforming public procurement practices, but this will only materialise in the medium term," said Yesenn El-Radhi, senior vice president of global sovereign ratings at Morningstar DBRS.

Moody's said the country's improved relationship with the EU could be a credit positive, while S&P Global said the unlocking of EU funding could begin although fiscal pressures are likely to persist. The latter ratings agency has issued Hungary a BBB- rating, a notch above junk status.

PAKISTANI ASSETS JUMP ON SAUDI SUPPORT

Pakistani stocks .KSE jumped 2.7% to their highest since February 23 and its international bonds USY8793YAL66=TE, US695847AB92=TE gained nearly 1 cent on the dollar as Saudi Arabia said it will provide $3 billion in additional support to help it bridge a multi-billion-dollar gap in its finances linked to an upcoming debt repayment to the United Arab Emirates.

Pakistan deployed fighter jets and support aircraft to Saudi Arabia during the Iran conflict, and Islamabad has been hosting talks between Tehran and Washington.

With oil prices hovering near $100 a barrel, global concerns over energy security and growth continue to dominate.

The International Monetary Fund slashed its growth forecasts for developing economies earlier this week, though Managing Director Kristalina Georgieva said the global economy can still recover rapidly from the shock if the conflict ends in the next weeks.

Meanwhile, reports said Russia is ready to increase energy supplies to China ahead of an expected visit by President Vladimir Putin.

The off-shore yuan CNH= slipped 0.1%, while Russia's rouble RUB= was up 0.2% and has gained over 8% this month, tracking higher energy prices.

Elsewhere, Reuters reported that India's markets regulator will allow companies to cut the size of IPOs by as much as 50% without filing additional onerous paperwork as the Iran war has made it hard to follow through with initial plans. Stocks .BSESN, .NSEI were up 1.6% each.