* MSCI EM stocks fall 2.1%, currencies marginally up

* Asian equities slide on AI concerns, KOSPI falls 9%

* U.S. inflation data due on Tuesday

By Utkarsh Hathi and Purvi Agarwal

July 13 (Reuters) - Most emerging-market stocks slipped and

currencies were largely muted on Monday, as escalating

hostilities in the Middle East pushed oil prices higher and

dented global risk appetite.

U.S. and Iranian forces exchanged heavy missile and drone

attacks over the weekend and into Monday, with Tehran striking

U.S. facilities across the Gulf and saying it had again closed

the Strait of Hormuz, sending oil prices nearly 4% higher.

Risk assets in the Gulf region were mixed. Dubai stocks

slipped 1.2%, while Saudi Arabia's and Egypt's

benchmarks gained 0.4% and 0.7%, respectively.

International bonds in the Gulf region were marginally

lower, as were the ones in oil-importing countries such as Sri

Lanka and Kenya.

"The prevailing view is that the current situation will not

evolve into another full-scale war, even if President Trump

believes that the ceasefire is over," said Kathleen Brooks,

research director at XTB.

"This week will be a test to see if the continued skirmishes

between the U.S. and Iran can be absorbed by financial markets

without causing major damage."

Equities in Romania rose 1.3%, led by gains in oil

companies. Hungary added 0.4%.

CHIP TRADE

South Korean chipmaker SK Hynix ( SKHY ), which had a

stellar debut on the U.S. Nasdaq on Friday, dropped more than

15%, dragging the country's benchmark index down 9% to

its lowest level in more than two months.

Tech-heavy Chinese stocks fell nearly 2%

to three-month lows, while equities in Taiwan were flat.

A 1% gain in TSMC, after the world's largest contract

chipmaker posted a record second-quarter revenue, capped losses.

"The chip trade is big in the retail community, especially

in Asia... when the external environment changes, some of these

retail traders may take flight," added Brooks.

S&P maintained Indonesia's credit rating at 'BBB/A-2',

saying recent strains on its fiscal and external positions

should be temporary and could be offset by stronger commodity

prices and spending cuts. Local stocks rose 1.9%.

The broader MSCI global EM stocks index slipped

2.1%.

On the FX front, the dollar index edged 0.17% lower.

The MSCI currencies gauge was marginally higher

by 0.06%.

Most Asian currencies were flat to marginally lower against

the dollar, and South Africa's rand was little changed.

Turkey's lira was marginally lower, while most

emerging European currencies were lower against the euro.

Investors will watch inflation figures from the U.S., due on

Tuesday, with Federal Reserve Chair Kevin Warsh remaining laser

focused on keeping inflation at 2%.

HIGHLIGHTS:

** China's GDP growth set to slow, raising expectations for more

stimulus

** Romanian inflation at 10.42% y/y in June, below expectations

** An emboldened India holds out for better terms in US trade

talks

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