* MSCI EM stock index up 0.73%, currencies rise 0.11%

* July jobs report pushes S&P 500 to record

* Tehran says Strait of Hormuz to remain shut until demands

met

By Niket Nishant

Aug 10 (Reuters) - Emerging market stocks rose on Monday

after a softer U.S. jobs report quelled fears of higher interest

rates and reignited risk appetite in some pockets, offsetting

concerns over the future trajectory of oil prices.

EM investors took cues from Wall Street, where the S&P 500

closed at a record high on Friday after the July payrolls

figures lowered the odds of a Federal Reserve interest rate

hike.

Over the weekend, Tehran reiterated that it would not reopen the

Strait of Hormuz until Washington met certain demands,

potentially keeping oil prices elevated and inflation risks

front and centre. The U.S.-Iran war, now in its sixth month, has

shown few signs of easing despite stop-start diplomatic

efforts.

The "fragile labour market implies (that the) FOMC can let

the energy price shock pass," said Samuel Tombs, Pantheon

Macroeconomics' chief U.S. economist, referring to the Federal

Open Market Committee, the body of Fed policymakers which

decides rates.

MSCI's gauge of EM equities rose 0.73%, after

declining last week. Its corresponding currencies gauge

traded 0.11% higher.

The gains illustrate investors' eagerness to latch on to any

data that may prompt a dovish tilt at the Fed.

"Investors are getting fatigued over the Iran situation.

It's become very unpredictable," said Louis Navellier, chief

investment officer at Navellier & Associates.

Analysts have warned against discounting the risk from oil

prices, as just one weak labour market reading may not be enough

to convince the Fed to shift its focus away from inflation

threats.

"Significant hurdles remain before any broader agreement is

reached," wrote ING strategists.

Investors will also scrutinise fresh inflation data in the U.S.

this week. Economists polled by Reuters expect CPI to rise 3.4%

on a year-over-year basis.

RUPIAH HITS HIGHEST SINCE JUNE

Indonesian equities slipped 0.69%, seesawing through the

day as President Prabowo Subianto nominated Destry Damayanti as

the sole candidate to be the next central bank governor.

Destry, the central bank's second most senior official,

could help soothe jitters after the sudden departure of Governor

Perry Warjiyo, who resigned late last month citing personal

reasons.

The rupiah hit its highest in more than seven weeks,

and was last up 0.75% against the dollar.

South Korea's KOSPI index, which has become

emblematic of the rapid shifts in AI sentiment, secured a modest

0.65% gain after a seven-week losing streak.

China's Shanghai Composite Index rose 0.67%.

Producer price inflation eased more than expected in July to its

weakest in three months, while consumer inflation also cooled,

according to official data released on Sunday.

The data partly reflected the "loss of domestic economic

momentum," according to Jim Reid, Deutsche Bank's head of global

macro and thematic research.

In Europe, Romanian equities rose 0.89% ahead of the

central bank's interest rate decision. Analysts polled by

Reuters expected rates to stay on hold.

Equities in Poland, a regional heavyweight, were

0.23% higher.

However, Europe is battling record heat and droughts this

summer, and analysts say the hit to the region's economy could

be in the range of hundreds of billions of euros.