* Stocks fall 0.1%, currencies down 0.2%

* Polish zloty down day after cenbank holds rates

* OECD cuts Turkey's 2026 growth forecast

By Niket Nishant

June 3 (Reuters) - Emerging market assets slipped on

Wednesday as renewed Middle East tensions dented peace hopes and

raised concerns that higher energy prices could further weigh on

growth.

MSCI's EM stocks gauge fell 0.1% after three

straight days of gains, while the currencies index

dropped 0.2% for a third consecutive session.

Central banks across the world have been struggling to

navigate turbulence from the U.S.-Israel war against Iran, now

in its fourth month, which has disrupted oil shipments through

the Strait of Hormuz and fuelled inflation.

While investors have clung to hopes that, despite setbacks,

the war will be resolved at the negotiating table, recent

strikes by both sides have tested that resolve.

On Wednesday, an Iranian missile attack damaged Kuwait's

airport and the U.S. military carried out strikes near the

Strait of ​Hormuz, as diplomacy between Washington and Tehran

showed little progress.

"Even if the conflict were to end rapidly, oil prices are

likely to remain above pre-crisis levels for some time, as

supply would take months to fully recover and logistical

bottlenecks could linger longer," said Maria Paola Toschi,

global market strategist at J.P. Morgan Asset Management.

In Europe, the Polish zloty fell 0.2% against the

euro, a day after the National Bank of Poland left its interest

rate unchanged. Polish equities were flat.

"The decision to leave rates unchanged was justified by

uncertainty regarding further geopolitical developments and

their impact on the economy," ING economists wrote in a note.

Data released last week showed inflation in May was more benign

than expected.

Elsewhere, Turkish stocks slipped 0.6% after two

days of gains, as the Organisation for Economic Co-operation and

Development trimmed its 2026 growth forecast for the country,

citing weaker domestic demand due to high energy prices and

tighter financial conditions.

The lira fell almost 0.1% versus the U.S. dollar.

The Indian rupee continued its weak run, falling

0.5% and hitting its lowest in a week. Four traders told Reuters

the central bank had likely intervened to limit the rupee's

fall.

Shares also fell, with the benchmark Nifty 50 . down

0.6% as elevated oil prices and a pullback in IT stocks weighed

on sentiment.

The tech-heavy bourse in Taiwan rose 2% for its

fourth straight day of gains. Goldman raised its recommendation

on Taiwan shares to "overweight."

Indonesian equities hit their lowest in over five

years and were last down 3.8% as shrinking trade surplus and

inflationary pressures underscored challenges from prolonged

high energy prices.