* MSCI EM stocks, FX slip 0.2% each

* Chipmaker rebound lifts Chinese, South Korea equities

* Bonds in Gulf countries, oil importers stabilize

By Utkarsh Hathi

July 9 (Reuters) - Most emerging-market stocks and

currencies edged higher on Thursday as investors looked past a

fresh escalation in the Middle East, with oil prices retreating

after U.S. strikes on Iran and Iranian attacks in the region

failed to trigger a broader market selloff.

Although Iran attacked Kuwait and Bahrain following the U.S.

strikes, oil prices fell from two-week highs touched in the

previous session.

Risk assets in the Gulf region were mixed. Saudi Arabia

and Dubai stocks slipped 0.4% and 0.1%

respectively, while ones in Egypt gained 0.4%.

International bonds in the Gulf region stabilized, with

those in Bahrain, Kuwait and Saudi Arabia flat to slightly

higher on the dollar. Bonds in oil importers Sri Lanka and Kenya

also edged up.

"The problem now is... when a new peace deal is announced,

they aren't really going to give it full credit because they

don't think it's going to last," said Michael Field, chief

equity strategist at Morningstar.

"Equally when war starts up again, people aren't going to

take this as seriously either because they think a peace deal

will probably be announced in the next few days... we're in a

strange place."

MSCI's global EM stocks index edged 0.22% lower,

with most declines contained by gains across regions.

AI-aligned stocks rebounded from their recent dip, pushing

South Korea's KOSPI up 0.6%, while equities in China

registered their biggest one-day jump in three

months as chip stocks regained lost ground.

Stocks in emerging Europe also bounced back, with indexes in

Romania and Hungary up about 1% each and Polish

blue-chip stocks up 0.8%.

The South African benchmark rose 1.2%, tracking a

recovery in prices of precious metals, a top export of the

country.

On the FX front, the dollar index edged 0.05% lower.

The MSCI currencies gauge was off 0.17%.

Most currencies were flat to marginally higher against the

dollar in Asia, and South Africa's rand appreciated 0.2%.

Turkey's lira was little changed, while most

emerging European currencies were subdued against the euro.

Hungary's forint depreciated 0.4%.

Separately, data showed Romania's economy shrank 1.2% on the

year in the first quarter.

Investors assessed minutes from the Federal Reserve's June

policy meeting, which showed a "few participants" said there was

already a case to raise borrowing costs.

Bets on an interest rate hike from the U.S. central bank

dwindled last week after a weaker-than-expected jobs report

pointed to a stabilizing labour market.

HIGHLIGHTS:

** China's producer inflation jumps to 4-year high, squeezing

manufacturers

** China curbs short-term bond sales by local government

financing vehicles, sources say

** Thai court rules government's $12 billion emergency loan is

lawful

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see

(Reporting by Utkarsh Hathi and Purvi Agarwal in Bengaluru;

Editing by Ros Russell)