<div id="readability-page-1">* 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 &#34;underweight&#34; from &#34;neutral&#34; - 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. &#34;The energy price shock will of course worsen the current account positions of net-energy importing EMs,&#34; said Shilan Shah, deputy chief emerging markets economist at Capital Economics. &#34;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.&#34; 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. (Reporting by Johann M Cherian in Bengaluru; Editing by Toby Chopra)</div>

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Emerging markets faced declines in stocks and currencies as crude oil prices remained above $100 due to ongoing tensions in the Middle East. Central banks in India and Indonesia intervened to stabilize their currencies at record lows. Meanwhile, Hungary lifted its veto on an EU loan to Ukraine following the resumption of oil flows through the Druzhba pipeline. Additionally, Saudi Arabia and the Philippines are set to join JPMorgan's emerging market bond index in 2027. Despite the challenges, AI stocks like SK Hynix and Samsung Electronics showed strong gains.

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EMERGING MARKETS-Stocks, FX drop as Middle East tensions keep crude prices above $100