* Hungarian assets surge as Tisza party wins, raising

hopes for EU cooperation and reforms

* US-Iran standoff drives oil up, hits emerging market

assets

* Fitch revises Turkey outlook to stable, citing FX

reserve erosion from lira support

* World Bank President warns of looming jobs crisis amid

ongoing geopolitical instability

By Johann M Cherian

April 13 (Reuters) - Hungarian assets were the standout

performers on Monday as investors cheered the win of the

centre-right Tisza party in weekend elections, with emerging

markets more broadly coming under pressure after talks between

the U.S. and Iran failed to agree an end to the war.

Hungary's benchmark share index jumped 3% to a record

high and the forint rose 2.44% to a four-year high of

366 per euro, with the currency at one point on track for its

biggest daily jump since October 2022. International bonds

maturing in 2050 and 2052

added more than 2 cents on the dollar.

The country's veteran nationalist leader Viktor Orban lost power

to the upstart centre-right Tisza party in Sunday's national

election after 16 years in office as voters grew weary of

economic stagnation, international isolation and oligarchs

amassing wealth.

Tisza's Peter Magyar is expected to open the door to greater

cooperation with the European Union and democratic reforms that

could pave the way for Brussels releasing 19 billion euros worth

of frozen funds that could help revive a stagnating economy.

"We expect the new government to focus on mending relations

with the EU and working toward fulfilling the criteria for

adopting the single currency," analysts at UBS Global Wealth

Management said.

"With the Hungarian forint having strengthened in the

lead-up to the election in anticipation of a change in

leadership, policies implemented in preparation for the euro

adoption could also see positive actions by rating agencies."

MIDEAST KEEPS INVESTORS WARY

In the Middle East, the U.S. military said it will begin a

blockade of all maritime traffic entering and exiting Iranian

ports and coastal areas, after weekend talks failed to reach a

deal to end the war with Iran, jeopardizing a fragile two-week

ceasefire.

Crude prices jumped more than 7% to top $102 a barrel, which

in turn weighed on riskier emerging market assets as investors

weighed how governments will adjust fiscal and monetary policy

to contain the threat to economic growth.

The repercussions from the conflict are likely to dominate

global finance officials' talks this week in Washington, and

World Bank President Ajay Banga warned that a looming jobs

crisis is also emerging.

MSCI's index tracking EM stocks slipped 0.7%, a

currencies index dipped 0.2% as investors

flocked to the safe-haven dollar, and international bonds of

most developing economies slipped across the board, with Egypt's

bonds down about 0.9 cents

on the dollar.

The assets had rallied late last week after the announcement

of a two-week ceasefire between Tehran and Washington.

Currencies of net oil importers slipped. India's rupee

was down 0.6%, Turkey's lira eased 0.1%,

with both hovering near their respective record lows, while

South Africa's rand lost 0.8%.

Credit rating agency Fitch revised Turkey's outlook to "stable"

from "positive", citing a sharp erosion in foreign exchange

reserves due to heavy intervention to support the lira. Local

equities also took a hit, with banks down 3.2%.

Elsewhere, a weekend ceasefire between Ukraine and Russia was

allegedly breached as Ukrainian police said a Russian drone

killed one person on the front line of the eastern Donetsk

region. Kyiv's bonds were broadly steady

.

In Latin America, Peruvian assets will be in focus with

uncertainty over the results from the runoff general elections

on Sunday.