* MSCI EM stocks at record highs, up 1.3%, currencies

gain 0.3%

* Oil remains over $100 a barrel as Iran-U.S. talks stall

* South African markets closed for a holiday

By Purvi Agarwal

April 27 (Reuters) - Emerging market stocks touched

record highs while currencies edged up on Monday, largely driven

by Asian markets that rallied on renewed enthusiasm for

artificial intelligence, while stalled U.S.-Iran talks pushed

oil prices higher.

MSCI's gauge of global EM stocks advanced 1.3%,

after marking their fourth consecutive week of gains on Friday.

The rise on Monday was largely led by Asian bourses, as

investors bought into a revived appetite for AI ahead of

earnings from U.S. big tech companies this week.

Equities in South Korea and Taiwan climbed

2.2% and 1.8%, respectively, hitting record highs, and were

headed for their best month in more than three decades.

"The AI-investment boom is shoring up the major electronics

exporters, partly cushioning the impact of the war... (but) the

electronics sector is not immune; semiconductor production is

dependent on helium and other specialized gases for which the

Gulf is a critical supplier," said analysts at Commerzbank.

However, the optimism failed to spill over to other EM

equities. Romanian stocks were up 0.1% and Hungarian

shares were flat. Polish stocks slipped 0.7%.

Turkish stocks were up 0.7%, while Israeli stocks

inched 0.3% lower.

Markets in South Africa were closed for a public holiday.

U.S.-IRAN TALKS STALLED AS PEACE DEAL SEEMS FAR AWAY

Investors remained focused on developments in the Middle East

after U.S.-Iran talks stalled over the weekend. U.S. President

Donald Trump cancelled his envoys' trip to Islamabad for

negotiations.

Oil prices remained over $100 a barrel, pressuring the

outlook for global growth.

The inflationary fallout from the Iran war has been at the

forefront of concerns, as the crucial Strait of Hormuz, which

handles over one-fifth of the world's energy trade, remains

choked, especially for energy-reliant Asian and European

economies.

However, as the war enters its third month, investors seem

to be looking past the conflict to focus on economic

fundamentals and quarterly earnings.

Meanwhile, most emerging market currencies inched higher

against a falling dollar, taking the MSCI EM currencies measure

up 0.3%, after it posted a weekly decline on

Friday, its first in four.

Turkey's lira was little changed against the

dollar, and so was the Israeli shekel.

Most currencies in emerging Europe were subdued against the

euro. However, the Russian rouble strengthened 0.5%

against the dollar, over-the-counter market data showed.

Investors will scrutinize comments from a host of central

bank policymakers this week, including those from the U.S.

Federal Reserve, for any clues on their approach to monetary

policy.

HIGHLIGHTS:

** Netanyahu's biggest rivals join forces for Israel's next

election

** China's industrial profit growth quickens even as Iran war

heightens risks

** Under cover of trade truce with Trump, China expands economic

pressure toolkit

** Fitch upgrades Lithuania to 'A+', keep outlook stable

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For RUSSIAN market report, see