* Oil jumps after U.S.-Iran peace progress stalls

* Chinese equities hit 11-year high, yuan at three-year

high

* Ukraine bonds gain 1 cent on the dollar each

* MSCI EM FX down 0.1%, stocks up 0.8%

By Purvi Agarwal

May 11 (Reuters) - Most emerging market stocks and

currencies held steady on Monday after gains in the previous

week, as progress in U.S.-Iran talks on a peace deal faltered,

but Asia's tech-exposed indexes advanced on AI-linked optimism.

Investor sentiment was subdued across emerging markets after

U.S. President Donald Trump rejected Iran's response to a U.S.

peace proposal, stalling progress on talks to end the war.

Oil prices surged again, as shipping through the crucial

Strait of Hormuz, through which 20% of the world's energy

shipments transit, remained choked.

"Given the gaping chasm between the two sides' negotiating

positions and deep mutual mistrust, (this) should come as no

surprise," said Marc Ostwald, chief economist and global

strategist at ADM Investor Services.

"As long as the military conflict remains in abeyance ... the

fact that they continue to negotiate ... is basically positive,

though the risk of a renewed confrontation remains a real one."

Most Asian currencies edged lower against the U.S. dollar. South

Africa's rand dropped 0.2%, and Turkey's lira

was subdued, with MSCI's gauge tracking global EM currencies

down 0.1%.

Most currencies in emerging Europe were little changed

against the euro, but the Hungarian forint weakened

0.8%, to its lowest level since September 2021.

On the flip side, MSCI's index tracking EM stocks hit

a record high, lifted largely by robust gains in Asian equities.

Morgan Stanley raised its target to 1,850 for the index for the

next 12 months on stronger AI/tech earnings in South Korea and

Taiwan.

South Korea's Kospi jumped 4.3% to a record high, led by

a rally in chipmakers and tech stocks, with SK Hynix

surging more than 11%.

Equity benchmarks in China gained more

than 1% each, hitting their highest level in close to 11 years,

while ones in Taiwan were up 0.5%.

The Chinese yuan strengthened to its highest level

since February 2023 against the dollar, before retreating, after

data showed China's export growth gathered pace while factory

inflation hit a 45-month high in April.

Trump is scheduled to meet Chinese President Xi Jinping on

Wednesday, with the agenda including trade, Iran and Russia.

Equities in Poland gained 0.6%, while those in

Hungary fell 0.2%. Stocks in Romania surged 1.3%

to a record high.

The Romanian leu was trading at record lows hit last

week after a no-confidence vote toppled the government, putting

EU funds and credit ratings at risk.

Turkish stocks were flat, while South Africa's

slipped 0.5%, tracking lower gold prices.

Meanwhile, Russia and Ukraine accused each other of violating a

three-day ceasefire, but Russian President Vladimir Putin said

on Saturday that he thought the war wascoming to an end.

International bonds in Ukraine gained about 1 cent on the

dollar each.

HIGHLIGHTS:

** Pakistan to issue first 'Panda bond' next week, finance

minister says

** IMF board clears Pakistan to access $1.32 billion

** Egypt gets additional $300 million in World Bank package for

war response

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see