* India, Indonesia central banks intervene to support

currencies at record lows

* Hungary lifts veto on EU loan to Kyiv after oil flows

resume via Druzhba pipeline

* Saudi Arabia, Philippines to join JPMorgan emerging

market bond index in 2027

* Investors eye AI stocks, with SK Hynix and Samsung

Electronics ( SSNLF ) posting strong gains

By Johann M Cherian

April 23 (Reuters) - Emerging markets stocks and

currencies dropped on Thursday as continued restrictions on

shipping through the Strait of Hormuz and no signs of U.S.-Iran

negotiations kept crude prices pinnedabove $100 a barrel,

fanning worries of an imminent global slowdown.

MSCI's gauges for emerging stocks shed 0.4% and a

parallel currencies gauge dipped 0.2% as

investors flocked to the safe-haven dollar.

The sustained pressure on markets has seen policymakers consider

defensive steps, with Indonesia's central bank saying it will

continue to intervene in currency markets to stabilize the

rupiah which has hit a record low of 17,315 per dollar.

The currency logged its biggest daily loss since September.

Also in energy-deficient Asia, India's central bank came to the

defence of the rupee by selling dollars, according to

traders. The currency is also hovering near record low levels of

94 per greenback.

Higher energy prices are expected to weigh on Indian corporate

earnings, HSBC said, as the brokerage downgraded the south Asian

nation's equities to "underweight" from "neutral" - its second

cut in less than a month. The main share benchmarks

were down about 0.7% each.

Meanwhile, the Philippine peso slipped 0.4%, finding

little support after the central bank hiked its key interest

rate to 4.50% to keep a lid on rising inflation fuelled by

energy costs. Vietnam also signalled that inflation could

overshoot its target this year.

NO MIDEAST PEACE DEAL ON THE HORIZON

Despite an ongoing ceasefire, there was no certain end in sight

for the conflict that has flooded global markets with

volatility. Hostilities continued between Israel and Hezbollah

in Lebanon and the U.S. enforced a strict blockade of Iranian

ports, drawing ire from Tehran.

"The energy price shock will of course worsen the current

account positions of net-energy importing EMs," said Shilan

Shah, deputy chief emerging markets economist at Capital

Economics.

"But unlike other recent energy shocks such as the start of

the Ukraine war, the external balance sheets of most EMs are

starting from a position of strength, limiting the risk of large

currency adjustments."

Strain from the conflict also had countries reaching out to the

U.S. for financial backstops. U.S. Treasury Secretary Scott

Bessent said that a number of allies in the Gulf region and in

Asia have requested currency swap lines to help deal with energy

shocks and other fallout from the Middle East war.

The international bonds of the United Arab Emirates

, one of the countries that had

requested a swap line, were marginally lower.

Some respite was found in parts of emerging Europe as Russian

oil flowed through the Ukrainian section of the Druzhba pipeline

after a halt lasting months.

The move prompted Hungary to lift its veto on a 90 billion euro

($106 billion) EU loan to Kyiv. Ukraine's international bonds

added over 0.6 cents on the

dollar.

Despite the gloomy backdrop, investors continued to find

opportunities in artificial intelligence companies.

South Korean shares notched a fresh record close,

boosted by chipmakers, exports of which were also credited for

driving economic growth in the first quarter.

SK Hynix set a record for quarterly profit and

forecast artificial-intelligence chip demand would exceed

manufacturing capacity. The stock is up 88% this year, alongside

similar gains in Samsung Electronics ( SSNLF ) that announced

upbeat earnings projections earlier this month.

Elsewhere, J.P. Morgan said that Saudi Arabia and the

Philippines will be added to its local currency emerging market

debt index from January 29 next year, with Saudi Arabia's

weighting expected to reach 2.52% and the Philippines 1.78% once

fully phased in.

Traders also monitored political uncertainties in Romania after

leftist Social Democrats (PSD) - the ruling coalition's biggest

party - withdrew their support for Prime Minister Ilie Bolojan

earlier this week. The leu was steady.