* EM stocks, FX inch up after Trump's comments on US-Iran

negotiations

* Energy prices pressure Asia, Fitch warns of downside

risks

* Higher oil prices benefit Russia, boost African

ship-refuelling business

* Hungary's rate decision expected, forint and stocks dip

By Johann M Cherian

March 24 (Reuters) - Stocks and currencies in most

developing economies edged higher on Tuesday as investors

assessed contrary comments from the U.S. and Iran on potential

negotiations to end the nearly one-month conflict that has

shaken global markets.

MSCI's gauge for emerging market stocks closed

over 10% below its late February record high on Monday,

confirming that it had been in correction since then, according

to a commonly accepted definition. The index was up 1.7% on

Tuesday.

The currency benchmark edged 0.4% higher,

while local and hard currency bonds across the board from Sri

Lanka to Poland and Morocco

to South Africa were steady.

Ukrainian bonds were

also marginally higher ahead of a meeting between senior U.S.

and Kyiv's officials on the Reconstruction Investment Fund later

this week.

U.S. President Donald Trump's decision to postpone the

bombing of the Islamic Republic's energy and power

infrastructure because of what he described as productive talks

with Iranian officials offered markets some respite.

However, Iran denied his remarks and air strikes in the

region continued, further sparking volatility in markets.

Prices of crude oil, a key resource for developing

economies, wavered and were last at $110 a barrel, as the

strategic Strait of Hormuz remained mostly shut, cutting off

supply to energy-deficient Asia.

"For another big leg higher in risk assets to occur, we

probably need to hear something positive from the Iranian side,"

ING analysts said in a note.

ENERGY PRICES ARE TAKING A TOLL

Despite the relief on Tuesday, data and analysts are

pointing to Asia feeling the pressure, with ratings provider

Fitch saying Asia-Pacific sovereigns face a greater downside

risk.

India's rupee is trading near record lows at 93.80

per dollar, while stocks have lost over 12%

this quarter. Private sector growth hit a three-year low in

March and Goldman Sachs slashed its growth expectations for this

year.

Similarly, policymakers and data have shown Thailand,

Vietnam, the Philippines and Singapore are also facing higher

input and fuel costs.

Higher price pressures have also complicated the work of

central bankers. A rate decision is expected out of Hungary

later in the day. The forint slipped 0.4% to 336 per euro

, while stocks dipped 0.9%.

Investors see no change in rates, although commentary on the

outlook is likely to get a greater focus.

Inflation worries have also sparked a selloff in bonds

globally, and consequentially, Poland and the Czech Republic

have said they will trim their sovereign bond sales. Both the

zloty and the crown were flat.

NOT ALL ARE LOSERS

Higher oil prices are a boon for Russia, with the U.S. also

easing sanctions on some of its crude exports. Reuters reported

that the oil price spike has allowed the Russian government to

postpone a plan to boost long-term fiscal reserves, relieving

the pressure on short-term finances.

In Africa, ship-refuelling companies along the continent's

coast are seeing a surge in business as more vessels divert

around the Cape of Good Hope, while in Asia investors are

rushing into Chinese renewable stocks, with the CSI Green

Electricity Index up about 6% in March.

(Reporting by Johann M Cherian in Bengaluru; Editing by Mrigank

Dhaniwala)