(Updated at 0915 GMT)

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US PCE data due at 1230 GMT

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Inclusion in JPM bond index spurs short-lived rupee rally

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Polish inflation up more than expected in June

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Iran begins voting in presidential election

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Stocks up 0.4%, FX edge up 0.2%

By Johann M Cherian

June 28 (Reuters) - Most emerging markets' stocks and

currencies rose on Friday, ahead of key U.S. inflation data,

with the rand gaining as South Africans waited for cabinet

announcements, while India marked its entry into a widely

observed debt index.

The rand rebounded 1.5% to 18.2 to the dollar after

hitting a two-week low in the previous session, while the yield

on the benchmark bond dropped over 22 basis points (bps).

Investors are on tenterhooks ahead of executive

announcements in the country's first coalition government, as

disagreements remained between parties more than a week after

President Cyril Ramaphosa was sworn in.

"We believe ministerial positions in the Presidency,

Finance, and other key reform areas, such as Public Enterprises,

are unlikely to be offered to opposition parties," said Gina

Schoeman, South Africa economist at Citigroup.

"As a multi-party coalition, the (government of national

unity) will be highly complex, bringing more uncertainties with

regard to policy making."

India's rupee jumped in early trading, aided by

likely inflows into government bonds upon their inclusion in the

widely tracked JPMorgan emerging market debt index. The currency

was last muted, while the benchmark bond edged up 1

basis point.

In the run up to the inclusion, foreign investors have

already net bought government bonds worth nearly $11 billion.

MSCI's index tracking equities in developing markets

climbed 0.4%, while an index tracking currencies

inched up 0.2% against the dollar.

The equity index is on track for a monthly and quarterly

gain of 3.6% and 4.2% respectively, while the currencies index

is set to end June and the second quarter flat.

Emerging market bonds saw their largest weekly debt inflow

in three months of $800 million, according to analysts at BofA

Global Research, while equities saw inflows of $5.6 billion over

the past four weeks.

U.S. Personal Consumption Expenditure data, due at 1230 GMT,

would offer clues on the Fed's policy trajectory and the

consequent strength of the dollar.

Poland's zloty slipped 0.1% against the euro. Data

showed inflation in June rose 2.6% on an annual basis,

marginally surpassing expectations of 2.5%.

Kenya's shilling inched 0.2% lower with investors

attention on any uptick in violent developments.

Elsewhere, elections are underway in Iran against a backdrop

of geopolitical tensions in the Middle East and domestic

discontentment against economic hardship.