* Romania inflation hits three-year high

* Indonesia stocks fall after MSCI to cut six firms from

index

* Hungarian central bank minutes in focus

* MSCI EM FX flat, stocks up 0.5%

By Purvi Agarwal

May 13 (Reuters) - Most emerging market stocks rebounded

while currencies traded steady on Wednesday after logging

declines in the previous session, as oil prices ticked lower,

while focus remained on a meeting between the Chinese and U.S.

presidents.

MSCI's index tracking global EM stocks gained

0.5%, hovering around record highs, after marking its sharpest

one-day decline in over a month on Tuesday.

Indonesian stocks fell 2% to a more than one-year

low, bucking the wider trend, after index provider MSCI said it

will cut six companies from its Indonesia index. Goldman Sachs

estimates outflows of $1.6 billion from the rebalancing.

The Indonesian rupiah, which hit a record low of

under 17,500 versus the dollar this week, bounced off its lows.

Enthusiasm around artificial intelligence returned with

South Korea's Kospi ending 2.6% higher at a record

close.

"The index itself is starting to behave like a semiconductor

stock... daily gains and losses are being generated by a very

small subset of names," said Geoff Yu, EMEA macro strategist at

BNY.

Yu said that the particular group of stocks was starting to

distort asset allocation and positions for index investors in

South Korea and Taiwan.

Asian economies are heavily dependent on energy imports from

the Middle East, and signs of escalation in the conflict have

weighed on currencies in the region.

On that front, U.S. President Donald Trump said he thinks he

will not need China's help to end the conflict, ahead of a

meeting with Chinese President Xi Jinping.

"'No news is good news' is boosting markets... Trump will

meet the Chinese premier today, this means that the market does

not have to digest his latest musings on the state of the

ceasefire with Iran," said Kathleen Brooks, research director at

XTB.

Stocks in emerging European economies recovered, with

indexes in Poland and Hungary up 0.9% and 0.7%

respectively.

Romanian equities fell 0.7% after hitting record

highs in recent sessions. Data showed inflation in the country

hit a three-year high in April.

Turkish stocks were off 0.3%, while South Africa

equities gained 1.1%.

Meanwhile, the MSCI gauge tracking EM currencies

was flat, as most dollar-currency pairs were

subdued.

South Africa's rand appreciated 0.3% against the

dollar, while the Turkish lira was little changed.

Currencies in emerging Europe were subdued against the euro,

but the Hungarian forint weakened 0.8%, set for its

biggest daily drop in over a month.

Minutes from the central bank's latest meeting will be

watched in the day.

HIGHLIGHTS:

** Thai growth likely to top 3% over next 1-2 years on new

investments, minister says

** IMF set to unlock $375.5 million for Tanzania after

agreement

** Senegal president personally handling IMF debt talks,

office says

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