* MSCI EM stocks down 0.2%, FX down 0.05%

* U.S. jobs data later in the day

By Utkarsh Hathi

August 4 (Reuters) - Emerging market stocks were mixed on

Tuesday as easing volatility surrounding AI-linked trade offered

some respite, while currencies were range bound against the

dollar as traders monitored developments in the Middle East.

MSCI's index tracking global EM equities edged

0.2% lower, while its currencies equivalent was

little changed.

The fragile sentiment that has gripped chipmakers,

triggering sharp swings in Asian equities, showed signs of

stabilising on Tuesday.

South Korea's KOSPI rose 1.6%, with investors keeping

faith in the growth momentum of chipmakers and attributing the

recent selloff largely to the leverage trade rather than

concerns around AI spending.

Taiwan's tech-heavy benchmark was subdued.

Still, some investors remain wary that concerns over

excessive investment in AI infrastructure could continue to

weigh on sentiment through the second half of the year and

beyond.

"We have seen several flavours of this risk bubble up

recently, including Chinese competition in large language models

(LLMs) and inference, as well as circular financing with

Nvidia's deal to back $250 billion of a data centre buildout

among others," said Jeff Buchbinder, chief equity strategist at

LPL Financial.

In emerging Europe, Polish blue-chip equities

slipped 0.1% after hitting a record high in the previous

session, while Hungarian benchmark gained 0.7%.

Romanian benchmark declined 0.2%, though it remains the

strongest performer among its peers this year as higher oil

prices have lifted the energy-laden equities.

Meanwhile, oil prices rose 2.8% after more than a 7% plunge in

the previous session, with uncertainty on the U.S.-Iran talks

keeping energy supply a risk.

Markets are also awaiting U.S. jobs data later in the day for

clues on the Federal Reserve's monetary policy path.

Among currencies, Asian peers were range bound against a

steady U.S. dollar, while South Africa's rand firmed 0.1%

and its equities gained 0.4%, tracking precious metal

prices.

In emerging Europe, most currencies were muted against the

euro except the Hungarian forint, which slipped 0.4%.

The currency had firmed in the previous session over fears of an

energy crisis on plans to power down the country's only nuclear

plant as a severe drought affects water levels on the Danube.

The plant generates 40% of Hungary's electricity.

Elsewhere, the Turkish lira traded 0.1% lower.

HIGHLIGHTS:

** India's new stock closing auction sparks volatility ahead of

derivatives expiry

** South Korea inflation cools, but back-to-back rate hike not

ruled out

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