EMERGING MARKETS-Equities hit record high as domestic data and Fed rate-cut outlook in focus

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Stocks up 0.6%, forex up 0.1%

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South African rand gains on robust precious metal prices

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Poland's central bank widely expected to keep rates on hold

By Ragini Mathur and Twesha Dikshit

Jan 14 (Reuters) - Most Emerging Markets equities rose on Wednesday, with the broader stock index hitting a record high, as investors monitored domestic updates and U.S. inflation data drove their expectations ?of rate cuts. As geopolitical tensions stay high, U.S. President Donald Trump urged Iranians to keep protesting, saying help was on the way. Iran responded ?by accusing Trump of encouraging political destabilisation and inciting violence. Tension is also elevated over Greenland and ?Venezuela, and yet investors have pushed global markets higher.

The MSCI emerging market stock ?index rose 0.6%, exceeding Tuesday's ?record high.

ANALYST SAYS EQUITIES OFFER 'STRONGEST RISK REWARD'

"Adding to EM allocations is a consensus trade for the year, but we believe equities ?yield the strongest risk reward," said Geoff Yu, EMEA macro ?strategist at BNY.

"FX valuations are generally supportive, as they correspond to currency strength that helps limit pass-through inflation. However, the prospect of rate cuts, while the Fed is ?not accelerating its own easing, creates a challenging environment for ?more sustained ?FX gains." South Africa's benchmark stock index was trading at record peaks. The country's government on Tuesday welcomed approval of a bill by the U.S. House of Representatives that would renew Washington's ?preferential trade programme for Africa for another three years.

Turkey's benchmark share index was also hovering around all-time peaks. Hungary's stocks rose 0.5% to a record high, while Poland's were down 0.7%.

In Asia, South Korea's KOSPI index and Taiwan's benchmark index climbed record peaks on sustained strong demand for artificial intelligence-related assets.

CURRENCIES HOLD STEADY The Hungarian forint was up 0.1% against the euro, while the Polish zloty and the Romanian leu were little ?changed. Romania's ?annual inflation rate eased in December but remained near double digits due to government tax hikes that are designed to lower the highest budget deficit in the European Union. Market participants ?await Poland's central bank interest rate decision later in the day, with most analysts polled by Reuters expecting rates to remain unchanged.

The South African rand strengthened 0.3% against the dollar, benefiting from robust precious metal prices.

The broader currency gauge ticked up 0.1%.

The U.S. dollar index was little changed on the day after U.S. data on Tuesday indicated moderate price pressures.

The dollar has come under pressure this week because of concerns over the Fed's independence, which some investors believe ?strengthens the case for diversification beyond U.S. assets. Markets will monitor the U.S. Supreme Court's rulings later in the day, which could include litigation on the legality of Trump's global tariffs.

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market ?report, see

For RUSSIAN market report, see (Reporting by Ragini Mathur and Twesha Dikshit in Bengaluru; editing by Barbara Lewis)