* Indonesia clings to emerging markets mantle as MSCI

extends review

* Venezuela bonds climb after report of $240 billion debt

pile

* Hungary's forint falls after rate cut, signal of further

easing

By Ragini Mathur and Avinash P

June 24 (Reuters) - Emerging-market currencies edged lower

on Wednesday as a stronger U.S. dollar sapped demand for riskier

assets, while stocks struggled to regain momentum after a sharp

technology-led rout.

MSCI's index of emerging-market equities was

subdued after sliding about 4% on Tuesday.

South Korean shares rebounded 3.3% in a volatile

session, recovering some ground after a 10% plunge on Tuesday,

their steepest one-day drop since March, as a selloff in

heavyweight technology names swept through markets.

The KOSPI has doubled over the past year to become the

world's best-performing major stock index, fuelled by surging

chipmakers at the centre of the artificial intelligence

infrastructure boom.

"The size of the drawdown is pretty impressive but totally

understandable when looking at the preceding parabolic rally,"

said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

KOSPI's rise had become too concentrated, too expensive and

too volatile to be considered a "healthy and sustainable trend",

he added.

The rally in heavyweight South Korean stocks has been a key

driver of the MSCI emerging-market equity index's strong gains,

leaving the benchmark on course for its best first-half

performance since 2009, when markets were rebounding from the

global financial crisis.

MSCI kept South Korea in its emerging-market category in its

annual market-classification review, citing longstanding

accessibility issues tied to the onshore foreign-exchange

market.

Indonesia, Southeast Asia's largest economy, also retained

its emerging-market status after MSCI deferred a review, giving

regulators more time to implement reforms and avoid a downgrade

that could prompt billions of dollars in outflows.

The Jakarta Composite Index slipped 3.4%, while the

rupiah weakened 0.5% against the U.S. dollar.

A broader EM currency gauge eased 0.2%, as

the dollar extended gains to a fresh 13-month high against a

basket of major currencies.

In central Europe, Hungary's forint fell 0.4% from

multi-month highs after the country's central bank cut interest

rates and flagged further easing in the coming months.

"If the external environment remains supportive and local

politics deliver on previous commitments to the euro adoption

plan, EU funding developments and long-term fiscal adjustments,

the risk premium for Hungarian assets could remain persistently

low," said Peter Virovacz, chief economist for Hungary at ING.

Other central European currencies edged lower against both

the euro and the dollar, while regional equities were mostly

subdued.

Poland's benchmark underperformed, falling 0.7%, even

as data showed the country's registered unemployment rate eased

to 5.9% in May from 6.0% in April.

Elsewhere, Turkish stocks fell 0.8%, while the lira

firmed. South African equities and the rand

also lost ground, down 0.6% and 0.3%, respectively.

Venezuela's sovereign bonds

rose between 0.5 and 1 cent on the dollar in

European trading following a Financial Times report that a

soon-to-be-announced estimate would put the country's overall

debt at about $240 billion.

The bonds have cooled over the past month after an

unprecedented rally sparked by the U.S. capture of Nicolas

Maduro in January.

HIGHLIGHTS:

** Keiko Fujimori secures unbeatable lead in Peru

presidential election

** Thai central bank raises economic outlook, holds rates as

expected

** US, Iran at odds on nuclear inspections, frozen assets in

deal to end war

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see