* MSCI EM stocks up 2.8%, FX gains 0.5%

* South Korean stocks hit record high, Samsung reaches $1

trillion

* Intervention speculation swirls after yen surges,

dollar dips

* Poland monetary policy decision due on Wednesday

By Purvi Agarwal

May 6 (Reuters) - Emerging market currencies gained on

Wednesday as optimism around a peace deal in the Middle East

supported risk appetite, while artificial intelligence euphoria

powered stocks to a record high.

Oil prices fell for a second session after U.S. President Donald

Trump said he would briefly pause an operation to escort ships

through the Strait of Hormuz, citing "great progress" towards an

agreement with Iran.

The conflict that began in late February had sparked

concerns around energy-driven global inflation and slowing

economic growth.

"The market mood flip-flops between AI optimism and Middle

East headlines, with geopolitical worries having a smaller and

shorter-lived impact as investors become used to the war

headlines... there is a certain underpricing of the risks here,"

said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

Inflation in South Korea and Thailand hit multi-year highs in

April, while worries over growth in import-dependent Asian

economies had sent Indonesia's rupiah to a record low on

Tuesday.

Meanwhile, many Asian bourses tracked optimism around artificial

intelligence-linked companies on Wall Street overnight, with

shares of Samsung Electronics ( SSNLF ) soaring 14%.

The firm joined the $1 trillion club and propelled South Korea's

Kospi above the 7,000 point mark for the first time.

"After being extremely well-held heading into the Iran

conflict, South Korean equities faced a dry spell... but

mid-March onwards, markets evidently decided that the

(semiconductor) theme itself was secular, and earnings could

deliver independently of supply risks," said Geoff Yu, EMEA

macro strategist at BNY.

MSCI's index tracking global EM equities hit a

record high as well with a 2.8% jump, and the optimism spilled

over into other equities.

Those in Poland up 2.2% were set for their biggest

one-day jump in over a month. Hungarian equities gained

0.4% and Romania's stocks jumped 0.9%.

Turkey's stocks were up 2.3% at a record high,

while the lira was little changed against the U.S.

dollar.

South African stocks advanced 2.3%. The country's

currency strengthened 1.3%, on the back of a 2.6% spike

in gold prices, one of the country's top exports.

The MSCI currencies gauge was up 0.5%.

The Japanese yen surged over 1% against the dollar, sparking

speculation of further intervention by Tokyo, widely credited

for last week's sharp rally in the ailing currency.

Most currencies in emerging Europe were subdued against the

euro.

Romania's leu hit a record low on Tuesday after Prime

Minister Ilie Bolojan's government was toppled in a

no-confidence vote, and was flat on Wednesday.

Poland's zloty appreciated 0.2% ahead of a

monetary policy decision.

Elsewhere, Venezuela's international bonds surged about 3 cents

on the dollar each after the U.S. Treasury issued a license

authorizing legal, financial advisory and consulting services

linked to potential debt restructuring in Venezuela on Tuesday.

HIGHLIGHTS:

** China services activity grows at faster rate in April,

private PMI shows

** Falling Q1 deficit to help Romanian debt after government

collapse

** India approves $1.9 billion credit guarantee to support

businesses hit by Middle East crisis

For TOP NEWS across emerging markets

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For TURKISH market report, see

For RUSSIAN market report, see