EMERGING MARKETS-Stocks gain as China trade data, lower oil prices fuel risk on moves ahead of US inflation

By Sudeshna Ghoshal and Ragini Mathur

Nov 10 (Reuters) - Emerging-market stocks extended a recent recovery on Tuesday as lower oil prices, a softer dollar and strong Chinese trade data burnished risk appetite, while investors await a US inflation report for clues on the Federal Reserve's next move.

Brent crude hovered around $90 a barrel, near its lowest since early September, extending the previous session's losses.

US President Donald Trump said there was no need for additional military action against Iran "at this point."

The conflict has fuelled global inflation concerns and prompted central banks to raise interest rates in recent months.

Dollar-denominated bonds from oil-importing issuers including Egypt and Sri Lanka rose, as lower crude prices improve the outlook for their external balances.

Ukrainian sovereign bonds also traded at more-than-six-week highs as Russian and Ukrainian officials held their first US-brokered talks since February after President Trump suggested last week that a broad deal to end the war and guarantee security in Europe was possible.

Meanwhile, China's trade surplus surged past $1 trillion in the first 10 months of the year, as a global race to build AI infrastructure boosted sales of its high-tech products and helped offset weak domestic demand.

China's blue-chip CSI300 Index .CSI300 closed 0.1% higher, while the yuan was little changed.

MSCI's emerging-market equity index .MSCIEF rose 1.8%, extending a rebound led by heavyweight Asian technology stocks. South Korea's KOSPI .KS11 surged 4.4%, while Taiwan's benchmark .TWII gained 2.5%, adding to Monday's advance after the island activated a $15 billion market-stabilisation fund.

"We're seeing something of a recovery rally after the rout of the last couple of weeks," said Michael Field, chief equity strategist at Morningstar.

Last week's selloff was triggered by a sweeping Democratic victory in US midterm elections that heightened concerns that tougher scrutiny of AI data-centre expansion could undermine the boom in tech stocks.

Sentiment also improved in emerging Europe.

Hungary's BUX .BUX was up 0.4%, while the forint was little changed after annual inflation accelerated to a six-month high of 2.0% in October, exceeding forecasts.

The reading reinforced expectations that Hungary's central bank will keep rates unchanged until next year after holding its base rate at 5.50% last month.

Czech stocks .PX rose 0.9% and the crown was steady against the euro after data showed inflation eased slightly last month.

MSCI's emerging-market currency index .MIEM00000CUS gained 0.2%, on track for its largest one-day rise in more than a month.

Investors are focused on October US inflation data due later in the day. Economists expect price pressures to have moderated only gradually, remaining firm enough to support expectations that the Federal Reserve could raise interest rates again next month.

Elsewhere, South Africa's rand was subdued after the official unemployment rate edged up to 33.7% in the third quarter, from 33.6% in the previous quarter.

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