* EM stocks rise 4.4%; FX up 0.9%

* Greece set to rejoin MSCI developed markets index in

2027

* India raises jet fuel, commercial LPG prices

By Pranav Kashyap

April 1 (Reuters) - Most emerging-market assets staged a

broad rally on Wednesday, kicking off April on a strong note as

hopes grew for de-escalation in the Iran war.

MSCI's EM stocks index surged 4.4%, putting it on

track for its strongest daily gain since November 2022. Asian

equities, which carry significant weight in the index, led the

charge.

South Korean equities jumped nearly 9%, while stocks

in Taipei and Islamabad climbed nearly 5% each.

Shares in Singapore, Hong Kong, Mumbai,

Budapest, Warsaw, Johannesburg, Dubai

and Prague all rose by more than 2%.

U.S. President Donald Trump and Secretary of State Marco

Rubio said the war in Iran could be nearing an end, with

Washington signaling room for both direct talks with Tehran's

leadership and a possible winding down of the conflict even

without a formal deal.

That sparked a relief rally across virtually every corner of

emerging markets. International dollar bonds issued by Pakistan

gained close to five cents on the dollar, while debt issued by

Egypt, Sri Lanka and Ukraine - among the hardest hit - also

attracted strong demand.

Greek stocks, meanwhile, added nearly 1% after index

provider MSCI said the country will return to its developed

markets index in May 2027.

"Long-term investors should stay invested and positioned for

medium-term upside, while continuing to take opportunities to

diversify and hedge portfolios, and manage exposures to markets

most at risk from elevated energy prices," said Mark Haefele,

chief investment officer at UBS Global Wealth Management.

HUNGARIAN ELECTIONS

Hungary moves into the spotlight this month as it gears up

for a parliamentary electionon April 12, with Viktor Orban

potentially facing the loss of power after 16 years. Hungary's

centre-right Tisza party is currently leading in opinion polls.

Hungarian stocks have largely outperformed broader EM

equities this year, as financial markets price in a vote thatmay

usher in a more pro-European government - raising the prospect

that Peter Magyar, if elected, could unlock billions of euros in

EU funds frozen over concerns about democratic standards under

Orban.

The forint has also outperformed most regional

peers.

"We agree that an opposition Tisza victory would likely be

forint-supportive," said Murat Toprak, CEEMEA FX strategist at

HSBC.

Yet the currency is "still exposed to elevated energy

prices."

Czech PMI manufacturing datamarked its highest reading in

nearly four years in March, while Polish factory output rose for

the first time in a year, underscoring resilience despite risks

stemming from the Middle East conflict.

Across the emerging-market landscape, however, countries are

still grappling with the surge in energy prices, with

governments from Thailand to IndiaandEgypt taking steps to

cushion the impact of costlier crude oil, which is stoking

inflation fears worldwide.