By Purvi Agarwal

May 6 (Reuters) - Emerging market currencies gained on Wednesday as optimism around a peace deal in the Middle East supported risk appetite, while artificial intelligence euphoria powered stocks to a record high.

Oil prices fell for a second session after U.S. President Donald Trump said he would briefly pause an operation to escort ships through the Strait of Hormuz, citing "great progress" towards an agreement with Iran.

The conflict that began in late February had sparked concerns around energy-driven global inflation and slowing economic growth.

"The market mood flip-flops between AI optimism and Middle East headlines, with geopolitical worries having a smaller and shorter-lived impact as investors become used to the war headlines... there is a certain underpricing of the risks here," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

Inflation in South Korea and Thailand hit multi-year highs in April, while worries over growth in import-dependent Asian economies had sent Indonesia's rupiah IDR= to a record low on Tuesday.

Meanwhile, many Asian bourses tracked optimism around artificial intelligence-linked companies on Wall Street overnight, with shares of Samsung Electronics 005930.KS soaring 14%.

The firm joined the $1 trillion club and propelled South Korea's Kospi .KS11 above the 7,000 point mark for the first time.

"After being extremely well-held heading into the Iran conflict, South Korean equities faced a dry spell... but mid-March onwards, markets evidently decided that the (semiconductor) theme itself was secular, and earnings could deliver independently of supply risks," said Geoff Yu, EMEA macro strategist at BNY.

MSCI's index tracking global EM equities .MSCIEF hit a record high as well with a 2.8% jump, and the optimism spilled over into other equities.

Those in Poland .WIG20 up 2.2% were set for their biggest one-day jump in over a month. Hungarian equities .BUX gained 0.4% and Romania's stocks .BETI jumped 0.9%.

Turkey's stocks .XU100 were up 2.3% at a record high, while the lira TRYTOM=D3 was little changed against the U.S. dollar.

South African stocks .JTOPI advanced 2.3%. The country's currency ZAR= strengthened 1.3%, on the back of a 2.6% spike in gold prices, one of the country's top exports.

The MSCI currencies gauge .MIEM00000CUS was up 0.5%.

The Japanese yen surged over 1% against the dollar, sparking speculation of further intervention by Tokyo, widely credited for last week's sharp rally in the ailing currency.

Most currencies in emerging Europe were subdued against the euro.

Romania's leu EURRON= hit a record low on Tuesday after Prime Minister Ilie Bolojan's government was toppled in a no-confidence vote, and was flat on Wednesday.

Poland's zloty EURPLN= appreciated 0.2% ahead of a monetary policy decision.

Elsewhere, Venezuela's international bonds surged about 3 cents on the dollar each after the U.S. Treasury issued a license authorizing legal, financial advisory and consulting services linked to potential debt restructuring in Venezuela on Tuesday.

HIGHLIGHTS:

** China services activity grows at faster rate in April, private PMI shows

** Falling Q1 deficit to help Romanian debt after government collapse

** India approves $1.9 billion credit guarantee to support businesses hit by Middle East crisis

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