JOHANNESBURG, May 6 (Reuters) - South African stocks, government bonds and the rand currency strengthened in early trade on Wednesday after U.S. President Donald Trump signalled a possible peace deal with Iran, lifting global risk appetite and boosting demand for emerging market assets.

• At 0802 GMT the rand traded at 16.43 against the dollar ZAR=D3, up about 1.5% from Tuesday's close.

• Trump said that "great progress" had been made towards a comprehensive agreement with Iran and said he would pause an operation to escort ships through the Strait of Hormuz.

• The U.S. dollar =USD was last down about 0.3% against a basket of currencies, with oil prices also falling to trade below $110 a barrel on expectations that bottled-up supply from the Middle East could resume.

• South Africa is a net importer of petroleum products and heavily exposed to fluctuations in global energy prices.

• "The risk at the moment is asymmetric, and the rand is vulnerable to further adverse developments that could hurt the country's terms of trade and tilt cross-border flows against the currency," ETM Analytics said in a research note.

• A business survey showed on Wednesday that South Africa's private sector expanded at its fastest in nearly four years in April.

• On the Johannesburg Stock Exchange, the Top-40 index .JTOPI was up 2.5%.

• South Africa's benchmark 2035 government bond ZAR2035= also firmed in early deals, with the yield down 14 basis points at 8.71%.