* MSCI EM FX, stocks up 0.2% each

* Both indexes set for marginal weekly gains

* Many markets closed for public holiday

By Purvi Agarwal

May 1 (Reuters) - Indexes tracking emerging market

stocks and currencies inched up in holiday-thinned trade on

Friday with attention on the Iran war and the prospect of more

intervention to support the Japanese yen.

MSCI's gauge tracking global EM currencies

was up 0.2%, set for its biggest monthly gain since November

2023 in April.

The stocks equivalent was also up 0.2%, on track

for its sharpest monthly advance since May 2009 last month. Both

indexes were set for marginal weekly gains as uncertainty over

the Iran conflict largely offset any optimism around corporate

earnings.

On Friday, the Japanese yen suddenly jumped against the

dollar, a day after official buying lifted the fragile currency.

"The bigger issue is whether intervention can do more than

briefly stabilise markets. Japan faces structural pressures: it

is a major energy importer amid elevated oil prices, and its

central bank is cautiously pursuing policy normalisation after

years of ultra-loose settings," Elwin de Groot, head of macro

strategy at Rabobank, said.

"Authorities can resist market forces for a time, but they

cannot fundamentally change them."

The dollar index, which measures the greenback against a

basket of currencies, dipped 0.1%.

South Africa's rand weakened 0.3%, partly due to a 1%

fall in gold prices, while most currencies in emerging Europe

slipped against the euro.

Romania's leu fell to a record low versus the euro

on Thursday due to worries about the future of Ilie Bolojan's

minority government which faces a no confidence vote in early

May.

Trading volumes were thin on Friday as Poland, Hungary,

Romania, Turkey, South Africa and many developed European

markets were shut for public holidays.

Meanwhile, progress in the Middle East conflict was stalled

as concerns of renewed military escalation between the U.S. and

Iran led investors to price in continued disruption to shipping

through the crucial Strait of Hormuz.

Since its outset, the conflict has battered global markets

and clouded prospects of global economic growth as countries

scrambled to tackle the impact of energy-driven inflation

pressures.

This week, the U.S. Federal Reserve's board was the most

divided since 1992, as some policymakers thought an "easing

bias" in the policy statement was not appropriate amid the

conflict.

European Central Bank President Christine Lagarde said on

Thursday the option of an interest rate hike was already on the

table, while the Bank of England said the worst economic impacts

could entail "forceful" rate rises.

More economic data and interest rate decisions next week

will provide further clarity on the war's impact on emerging

economies.

HIGHLIGHTS:

** China, US economic chiefs raise complaints in 'candid'

call ahead of Trump-Xi summit

** Czech central bank forecast to hold rates for now:

Reuters poll

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