* Higher energy costs complicate policy plans worldwide

* Asia explores ways to counter economic pressure from

conflict

* Senegal's credit rating downgraded by S&P due to

refinancing risks

* Oil prices rise above $100 due to escalating

hostilities

By Johann M Cherian

March 30 (Reuters) - Emerging markets stocks and

currencies fell on Monday as the month-long war in the Middle

East kept oil prices elevated, while markets seek clarity on

talks between the U.S. and Iran.

Israel said that Iran launched multiple waves of missiles at

Israel, and an attack had also been launched from Yemen.

The rise in energy costs as a result of the conflict weighed

on sentiment, given the negative implications for global

economic growth and the impact on fiscal and central bank

policymaking.

MSCI's gauge for EM stocks lost 1.7% and hovered

near January lows, while the currencies index

slipped 0.2% against the dollar.

The stock index is on track for its biggest monthly loss

since the pandemic selloff in March 2020, while the currency

index is set for its biggest monthly drop since September 2022.

Despite the gloom, some fund managers are still bullish on

Asia.

"We had a previous kind of shock like this in terms of war

and its impact on commodity prices, which was basically the war

in Ukraine in 2022 ... the countries (today) are in a much

better position to manage this kind of shock," said Ruchir Desai

of Asia Frontier Capital.

Asia has been looking at options to counter the economic

impact of the conflict.

Vietnam has suspended some of its fuel taxes, while

Indonesia's central bank said it had implemented new foreign

exchange repo transactions using its FX-denominated securities,

which helped the rupiah avoid a record low.

India's rupee also found some support after the

country's central bank asked banks to limit net open rupee

positions to $100 million, shifting to an absolute dollar limit

from a previous cap of 25% of total capital.

However, a subdued international debt market due to the

conflict is likely to complicate options for some countries.

Hard-currency bonds of countries such as Nigeria

, Ghana and Kenya

were marginally lower.

Meanwhile, ratings agency S&P lowered Senegal's local

currency rating to "CCC+/C" from "B-/B", citing rising

refinancing risks and the government's growing dependence on

short-maturity domestic debt amid stalled talks on a new

programme with the International Monetary Fund.

The country's bonds maturing in 2031 and

2048 were down about 0.1 cent on the dollar,

having already fallen 30% and 22%, respectively over the past

year.

Eastern European countries, such as Poland and the Czech

Republic, have also trimmed their bond sales recently.

There are some hopes for a de-escalation. U.S. President

Donald Trump said the U.S. and Iran had been meeting "directly

and indirectly." Pakistan, which is acting as an intermediary

between Tehran and Washington, said it was preparing to host

"meaningful talks" in the coming days.

Later in the day, the central bank of Israel is expected to

deliver its interest rate decision. The shekel was

steady.