* MSCI All-World up almost 14% in the quarter, largest pct

increase since 2020

* Dollar up 1.4% against peer currencies this quarter; EM

currencies hold their own

* Brent falls nearly 40% for the quarter, WTI down 30%

(Updates to U.S. stock market close)

By Rodrigo Campos and Amanda Cooper

NEW YORK/LONDON, June 30 (Reuters) - Stocks across the globe

on Tuesday posted their largest quarterly percentage increase in

six years, while Brent oil had its largest quarterly drop since

2020 as traders kept tabs on a fragile ceasefire between the

United States and Iran.

On the last day of the second quarter, the U.S. dollar

posted its fourth straight quarterly rise against a basket of

peers, while pushing the yen to a 40-year low, as

expectations for U.S. interest rate hikes shifted dramatically.

Emerging market currencies as a bloc gained over

1% to the greenback throughout the quarter.

In energy markets, the Strait of Hormuz has reopened

gradually and haphazardly as hostilities between the U.S. and

Iran receded into a fragile ceasefire, knocking almost 40% off

the price of Brent oil over the past three months.

A seemingly unstoppable boom in artificial intelligence

stocks kept the equities rally going for the quarter, with South

Korea's KOSPI up 68% and Taiwan's benchmark up

45%. The Nasdaq Composite added more than 21%. The MSCI

All-World index gained 14.5% in the quarter and

touched a record high earlier this month, marking its best

quarterly performance since 2020. Emerging market stocks

were up 23% for the period.

Europe's STOXX 600, which does not have nearly as

many AI beneficiaries as many Asian or U.S. indexes, ended up

10% for the quarter.

"In spite of all the geopolitical stuff, the U.S. economy is

performing well and corporate earnings are strong," said Oliver

Pursche, senior vice president and advisor for Wealthspire

Advisors in Westport, Connecticut. ""We've had a great first

half of the year, certainly better than most expected."

For the day, the Dow Jones Industrial Average rose 136.46

points, or 0.26%, to 52,319.20, a record closing high. The S&P

500 rose 58.93 points, or 0.79%, to 7,499.36 and the

Nasdaq Composite rose 393.58 points, or 1.52%, to

26,213.72.

MSCI's gauge of stocks across the globe rose

8.32 points, or 0.75%, to 1,120.37. The pan-European STOXX 600

index rose 0.88%, while Europe's broad FTSEurofirst 300

index rose 23.73 points, or 0.93%. Emerging market

stocks rose 16.86 points, or 0.99%, to 1,723.79,

while Japan's Nikkei ended up 594.21 points, or 0.86%,

to 70,062.32.

DOLLAR UP

The dollar has been the standout winner this quarter among

developed currencies, gaining 1.3% against a basket of

peers. Yet emerging market currencies have also strengthened

1.3% this quarter against the greenback.

The dollar has found support as markets increasingly price

in the likelihood of Federal Reserve rate hikes. U.S. inflation

remains well above target, the economy continues to grow and the

Fed's latest quarterly projections show nine of 19 policymakers

anticipate a rate hike by year-end.

"The dollar has strengthened further since the (Fed)

meeting, supported by widening growth differentials that we've

started to see between the U.S. and other major economies which

were amplified by higher oil prices," said James Lord, head of

FX EM strategy at Morgan Stanley.

"Recent economic data points to stronger U.S. performance,

particularly against the eurozone, where growth indicators have

been comparatively softer."

The world's most influential central bankers are in the

Portuguese town of Sintra this week for the European Central

Bank's annual meeting, and no one will be more in the spotlight

than new Federal Reserve Chair Kevin Warsh, who is scheduled to

address the gathering on Wednesday.

The dollar's rise has partly driven gold to a 14%

quarterly drop, its largest such fall since 2013, while the yen

fell to its weakest point in 40 years to trade around

162.57 per dollar late on Tuesday. Traders were on edge about a

possible Japanese intervention, with Finance Minister Satsuki

Katayama issuing another warning.

Katayama's comments "avoided the verbal escalation that

often precedes a buying effort, instead reiterating that

authorities stand ready to respond at any time," said Karl

Schamotta, chief market strategist at Corpay.

Brent crude futures for August settled 0.3% lower on the

day at $72.92 per barrel. The contract posted its third-straight

monthly decline, down over 20% in June and off 38% for the

quarter. U.S. crude fell 31% this quarter, yet both Brent

and WTI are close to 20% higher year to date.

"I wouldn't say the market has priced out a risk premium,

but previously stranded ships have become available with the

increase in ships moving out of the Gulf, creating a temporary

wave of new supply," UBS analyst Giovanni Staunovo said.

Morgan Stanley said it now models an implied global oil

market surplus of 4.8 million barrels per day in 2027.