EMERGING MARKETS-Stocks extend recovery; Hungary's forint rangebound ahead of rate decision

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Hungary's central bank to slow pace of rate cuts: Reuters poll

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India's April business growth at near 14-year high, PMIs show

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Czech central bank may cut rates next week, governor says

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EM stocks up 0.7%; FX adds 0.1%

By Bansari Mayur Kamdar

April 23 (Reuters) - Emerging market stocks extended gains for their second straight session on Tuesday, while the Hungarian forint struggled for direction ahead of an interest rate decision by the National Bank of Hungary (NBH), which is expected to slow the pace of its monetary policy easing.

The MSCI index for emerging market shares advanced 0.7%, tracking a global recovery after last week's rout as markets priced out some geopolitical risk related to the Middle East.

The currencies index inched 0.1% higher as the dollar eased following its sharp rally on investors paring bets on Federal Reserve rate cuts and worries about conflict between Iran and Israel that sparked a rush to safety.

The Hungarian forint was nearly flat against the euro ahead of the NBH's decision, where it is expected to slow the pace of rate cuts to 50 basis points amid concern that inflation could rebound, particularly given recent currency weakness.

The forint posted its second straight weekly loss on Friday and has fallen 2.8% against the euro so far this year.

"The prospect of the Fed keeping interest rates high for a prolonged period of time doesn't bode well for the forint at the time when the NBH is in an easing mode, reducing the attractiveness of its currency," said Piotr Matys, senior FX analyst at In Touch Capital Markets.

Poland's zloty slipped 0.3% after weaker than expected retail sales data, while the Czech crown edged 0.1% up against the euro.

The Czech National Bank may cut interest rates when it meets next week, and it will approach further easing "very cautiously" after that, Governor Ales Michl said.

The Russian rouble slightly strengthened against the dollar, while South Africa's rand was subdued.

China's yuan remained under pressure against the greenback after its central bank set the official guidance rate at the weakest level in nearly two months.

Hong Kong's Hang Seng Index extended its rally by 1.9% on boost by technology companies, while China's Shanghai Composite index and blue-chip CSI300 index closed the session 0.7% lower each.

Nevertheless, global investment houses are increasingly bullish about Chinese stocks, driven by resilient corporate earnings and policy efforts to boost shareholder returns.

In India, a survey showed business activity expanded at its fastest pace in nearly 14 years this month thanks to robust demand.

Shares in the South Asian country rose, tracking improving global mood and strong corporate earnings.

Meanwhile, India's markets regulator found a dozen offshore funds invested in Adani group companies were in violation of disclosure rules and in breach of investment limits, two people with direct knowledge of the matter said on Monday.

In Latin America, Argentine President Javier Milei boasted on Monday that his government is successfully taming profligate public spending, touting a rare first quarter surplus that he argues is key to improving the nation's economic prospects.

HIGHLIGHTS:

** Pakistan refiners warn $6 billion upgrades at risk due to fuel price deregulation plan

** Swiss report large drop in frozen Russian assets

** Nigeria seeking up to $2.25 bln in World Bank loans

(Reporting by Bansari Mayur Kamdar in Bengaluru, Editing by William Maclean)