<div id="readability-page-1" class="page">* MSCI EM stocks at record highs, up 1.3%, currencies gain 0.3% * Oil remains over $100 a barrel as Iran-U.S. talks stall * South African markets closed for a holiday By Purvi Agarwal April 27 (Reuters) - Emerging market stocks touched record highs while currencies edged up on Monday, largely driven by Asian markets that rallied on renewed enthusiasm for artificial intelligence, while stalled U.S.-Iran talks pushed oil prices higher. MSCI's gauge of global EM stocks advanced 1.3%, after marking their fourth consecutive week of gains on Friday. The rise on Monday was largely led by Asian bourses, as investors bought into a revived appetite for AI ahead of earnings from U.S. big tech companies this week. Equities in South Korea and Taiwan climbed 2.2% and 1.8%, respectively, hitting record highs, and were headed for their best month in more than three decades. &#34;The AI-investment boom is shoring up the major electronics exporters, partly cushioning the impact of the war... (but) the electronics sector is not immune; semiconductor production is dependent on helium and other specialized gases for which the Gulf is a critical supplier,&#34; said analysts at Commerzbank. However, the optimism failed to spill over to other EM equities. Romanian stocks were up 0.1% and Hungarian shares were flat. Polish stocks slipped 0.7%. Turkish stocks were up 0.7%, while Israeli stocks inched 0.3% lower. Markets in South Africa were closed for a public holiday. U.S.-IRAN TALKS STALLED AS PEACE DEAL SEEMS FAR AWAY Investors remained focused on developments in the Middle East after U.S.-Iran talks stalled over the weekend. U.S. President Donald Trump cancelled his envoys' trip to Islamabad for negotiations. Oil prices remained over $100 a barrel, pressuring the outlook for global growth. The inflationary fallout from the Iran war has been at the forefront of concerns, as the crucial Strait of Hormuz, which handles over one-fifth of the world's energy trade, remains choked, especially for energy-reliant Asian and European economies. However, as the war enters its third month, investors seem to be looking past the conflict to focus on economic fundamentals and quarterly earnings. Meanwhile, most emerging market currencies inched higher against a falling dollar, taking the MSCI EM currencies measure up 0.3%, after it posted a weekly decline on Friday, its first in four. Turkey's lira was little changed against the dollar, and so was the Israeli shekel. Most currencies in emerging Europe were subdued against the euro. However, the Russian rouble strengthened 0.5% against the dollar, over-the-counter market data showed. Investors will scrutinize comments from a host of central bank policymakers this week, including those from the U.S. Federal Reserve, for any clues on their approach to monetary policy. HIGHLIGHTS: ** Netanyahu's biggest rivals join forces for Israel's next election ** China's industrial profit growth quickens even as Iran war heightens risks ** Under cover of trade truce with Trump, China expands economic pressure toolkit ** Fitch upgrades Lithuania to 'A+', keep outlook stable For TOP NEWS across emerging markets For CENTRAL EUROPE market report, see For TURKISH market report, see For RUSSIAN market report, see (Reporting by Purvi Agarwal in Bengaluru; Editing by Rashmi Aich)</div>

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Emerging market stocks reached record highs, rising 1.3%, driven by Asian markets' enthusiasm for artificial intelligence, while currencies gained 0.3%. Oil prices remained above $100 a barrel amid stalled U.S.-Iran talks. South Korean and Taiwanese equities hit record highs, but other EM stocks showed mixed performance. Investors are focused on economic fundamentals and upcoming earnings, despite concerns over inflation from the Iran conflict. Most emerging market currencies strengthened against a declining dollar, with the Russian rouble gaining 0.5%. Central bank comments this week will be closely monitored for monetary policy insights.

Fidelity

SPDR S&P Em Asia

iShares Core MSCI EM

Dimensional Emerging Markets Value ETF

BetaShares Holdings Pty Ltd.

iShares MSCI EM Market Asia

Taiwan Fd

iShares Emerging Markets Equity Factor ETF

iShares Future AI & Tech ETF

SPDR Em Mkt

FIL Ltd.

ISHRS MSCI S Korea Capped

VG Em Mkts

Wisdomtree EM High Dividend Fund

Schw Em Mkt

The Vanguard Group, Inc.

iShares MSCI EM Ex-China

Global X Robotics & Artificial

SPDR S&P Em Mkt Dvd

Commerzbank AG

EMERGING MARKETS-EM stocks hit record high as AI optimism overshadows Iran talks stalemate