* Elections in Hungary and Peru could sway investor

sentiment

* Ceasefires in Middle East and Ukraine boost emerging

market assets, inflows resume

* IMF and World Bank may provide war-related financial

support

By Johann M Cherian

April 10 (Reuters) - Benchmark indexes for emerging

market currencies and stocks rose on Friday, with equities set

for their strongest weekly gains in more than five years on

relief over a two-week ceasefire in the Middle East.

Emerging Europe and Latin America are bracing for weekend

elections in Hungary and Peru that could be pivotal for how

investors perceive the two countries as investment destinations

in the years ahead.

Hungary's forint was steady at 376 per euro, while

local stocks gained 0.9%.

Sunday's elections in Hungary pose the biggest threat so far

to nationalist Prime Minister Viktor Orban's 16-year rule as

centre-right opposition party Tisza leads in most polls.

Orban has cut taxes and hiked wages to placate voters in an

economy that lags its peers. He has also angered much of Europe

by blocking loans to Ukraine.

A win for Tisza's Peter Magyar could help Hungary access

some of the 18 billion euros ($21 billion) of European Union

funds that have been frozen due to concerns over democratic

backsliding.

Both the forint and local stocks have outperformed regional

peers this year and investors say a clear win for Magyar could

fuel a further rally.

"While Tisza's commitment to unlock EU funds and a credible

euro adoption plan may help further narrow Hungarian risk

premiums if it wins, market reactions may depend on whether the

new government secures a mandate strong enough to amend laws

cemented in by supermajority (a two-thirds parliamentary

majority)," Eszter Gárgyán, an FX Strategist, CEE at UniCredit

said in a note.

EYES ON MIDEAST AND UKRAINE

MSCI's index tracking emerging markets stocks

added 0.9% and is on track for the biggest weekly rise since

June 2020. Asian stocks particularly benefited

and are set for their steepest weekly gain since 2011.

Flows into emerging market equities resumed this week, with

funds witnessing $3.5 billion of inflows, according to BofA

Global Research. MSCI's broader currencies index

was steady, on track for its biggest weekly gain in a year.

Heading into the weekend, investors were hopeful that the

two-week ceasefire in the Middle East could give way to a

lasting deal between the U.S.-Israel and Iran following talks in

Pakistan on Saturday.

However, nervousness was visible as crude prices

rose nearly 2% and crude shipments through the strategic Strait

of Hormuz were at a snail's pace.

The International Monetary Fund said that near-term demand

for financial support to offset the repercussions of the war

could rise to between $20 billion to $50 billion, while a report

said the World Bank Group could mobilize $20 billion to $25

billion in rapid financing.

Inflation pressures due to the conflict helped factory-gate

prices in China rise for the first time in more than three years

in March, although economists warn that higher costs not

stemming from demand could weigh on growth.

The yuan was steady, having gained nearly 1% earlier

this week, while benchmark stocks added 1.5%

and 0.5% on Friday.

Geopolitical tensions between Ukraine and Russia also showed

signs of cooling as Russian President Vladimir Putin announced a

32-hour ceasefire over a two-day period for Orthodox Easter.

Ukraine's hard-currency bonds

added over 1 cent on the

dollar as traders pinned their hopes on discussions between

Russia's special envoy Kirill Dmitriev - currently in the U.S.

to discuss a peace deal with members of the U.S. Trump

administration.

In Latin America, the focus will be on Peruvian elections on

Sunday.

The sol was flat in light trading. Peruvian stocks

are among the best performing in the region

this year, aided by strong economic growth.