June 30 (Reuters) - The BlackRock Investment Institute (BII) said on Tuesday it had become less bullish on the outlook for emerging market stocks and hard-currency debt, but more upbeat on the outlook for euro zone government bonds.

Here are the main points from the mid-year outlook of the BII, an arm of U.S.-based investment firm BlackRock that provides proprietary investment research:

• BII moved its overall stance on emerging market equities to a 'neutral' position from a small 'overweight'. The firm said it saw "opportunities where the AI buildout drives demand for infrastructure, particularly in Latin America."

• On emerging market hard currency, BII also moved to neutral from a small overweight, noting that fundamentals have improved, but pointed to a "more attractive risk-reward profile" in emerging market local currency debt.

• It swapped its neutral stance on emerging market local debt to a small overweight. "We like the yield relative to its volatility and improving fundamentals."

• Outside emerging economies, the BII upped its stance on euro zone government bonds from neutral to overweight. "We are overweight short- and medium-term bonds. Markets are pricing restrictive policy rates of about 3% for several years. We think that’s overdone."