By Avinash P

June 12 (Reuters) - Emerging market assets gained on Friday after U.S. President Donald Trump signalled a deal to end the Iran war could be signed as soon as this weekend.

The prospects of an imminent end to the three-month-old conflict pushed oil prices to a two-month low, somewhat easing concerns about inflationary pressures.

"The emerging markets, particularly South Asia and Southeast Asia, are particularly exposed to oil prices and exports from the Middle East. So any relief there will have an outsized impact on them as opposed to Europe or the U.S.," said Michael Field, chief equity strategist at Morningstar.

However, it remains to be seen if a deal will be confirmed. Investors hoping for a quick end to the conflict have been caught wrong-footed by false dawns in the past.

MSCI's index tracking EM stocks .MSCIEF jumped 3%, with Asian heavyweights South Korea .KS11 and Taiwan .TWII gaining 4.6% and 2.4%, respectively. Bonds in Saudi Arabia, UAE and Egypt rallied.

For the week, the EM index, however, could still end in the red after the period saw Washington and Tehran exchange tit-for-tat strikes, and an AI-linked selloff.

Stock markets across Asia advanced on Friday, with Chinese benchmarks .SSEC, .CSI300 adding 1.1% each while Indian equities .NSEI were up. .BO

Currencies were mostly higher against the U.S. dollar =USD, which was little changed. Indonesia's rupiah IDR= appreciated 0.6%, and India's currency INR=IN rose 0.8%.

MSCI's gauge tracking EM currencies .MIEM00000CUS gained 0.5% and was headed for a small weekly gain.

Turkey's central bank sees CPI at the end of 2026 at 29.14%, a survey showed. The monetary authority left its key interest rate at 37% on Thursday, as was expected.

Local stocks .XU100 gained 2.5%, while the lira TRYTOM=D4 firmed against the dollar.

In Africa, South African shares .JTOPI added 2.2%, while the rand ZAR= was steady.

Central European currencies were largely subdued against the euro. The Hungarian forint EURHUF= firmed 0.1% and was hovering near multi-year highs.

Local equities ticked higher with Warsaw's .WIG and Budapest's .BUX benchmark indexes jumping 2.3% and 1.5%, respectively.

HIGHLIGHTS:

** Bank of Korea governor says interest rates to be raised 'on time'

** Beijing's investment clampdown clouds outlook for Hong Kong banks, insurers

** India willing to let fiscal deficit widen to 4.8% of GDP, Bloomberg News reports

For TOP NEWS across emerging markets nTOPEMRG

For CENTRAL EUROPE market report, see CEE/

For TURKISH market report, see .IS

For RUSSIAN market report, see RU/RUB