* Hungarian forint nears multi-year highs

* India may allow fiscal deficit to widen to 4.8% of GDP,

Bloomberg News reports

* Oil prices slip over 4%

By Avinash P

June 12 (Reuters) - Emerging market assets gained on Friday

after U.S. President Donald Trump signalled a deal to end the

Iran war could be signed as soon as this weekend.

The prospects of an imminent end to the three-month-old conflict

pushed oil prices to a two-month low, somewhat easing concerns

about inflationary pressures.

"The emerging markets, particularly South Asia and Southeast

Asia, are particularly exposed to oil prices and exports from

the Middle East. So any relief there will have an outsized

impact on them as opposed to Europe or the U.S.," said Michael

Field, chief equity strategist at Morningstar.

However, it remains to be seen if a deal will be confirmed.

Investors hoping for a quick end to the conflict have been

caught wrong-footed by false dawns in the past.

MSCI's index tracking EM stocks jumped 3%, with

Asian heavyweights South Korea and Taiwan

gaining 4.6% and 2.4%, respectively. Bonds in Saudi Arabia, UAE

and Egypt rallied.

For the week, the EM index, however, could still end in the red

after the period saw Washington and Tehran exchange tit-for-tat

strikes, and an AI-linked selloff.

Stock markets across Asia advanced on Friday, with Chinese

benchmarks adding 1.1% each while Indian

equities were up.

Currencies were mostly higher against the U.S. dollar

, which was little changed. Indonesia's rupiah

appreciated 0.6%, and India's currency rose 0.8%.

MSCI's gauge tracking EM currencies gained

0.5% and was headed for a small weekly gain.

Turkey's central bank sees CPI at the end of 2026 at 29.14%, a

survey showed. The monetary authority left its key interest rate

at 37% on Thursday, as was expected.

Local stocks gained 2.5%, while the lira

firmed against the dollar.

In Africa, South African shares added 2.2%, while

the rand was steady.

Central European currencies were largely subdued against the

euro. The Hungarian forint firmed 0.1% and was

hovering near multi-year highs.

Local equities ticked higher with Warsaw's and

Budapest's benchmark indexes jumping 2.3% and 1.5%,

respectively.

HIGHLIGHTS:

** Bank of Korea governor says interest rates to be raised 'on

time'

** Beijing's investment clampdown clouds outlook for Hong Kong

banks, insurers

** India willing to let fiscal deficit widen to 4.8% of GDP,

Bloomberg News reports

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