EMERGING MARKETS-LatAm assets edge higher on US-Iran resolution hopes; elections in focus

* Peru faces political uncertainty after inconclusive elections, with Keiko Fujimori leading narrowly * Hungary's Tisza party victory boosts assets, raises hopes for EU fund release and reforms * Trump says focus could turn to Cuba after Iran tensions are conclude (Updates with afternoon trading) By Johann M Cherian and Twesha Dikshit April 13 (Reuters) - Latin American equities and currencies ticked higher on Monday as investors held out hopes that a resolution between the U.S. and Iran was near despite failed talks over the weekend, while monitoring electoral developments in Peru and Hungary. Former congresswoman and conservative candidate Keiko Fujimori held a slim lead in local elections in Peru, making a runoff looking likely next month, prolonging political uncertainty in the world's third-largest copper producer. Peru's sol edged up 0.6% to 3.37 per dollar , while local stocks edged up 0.9% and hard currency bonds were marginally higher. "Both candidates are seen as business friendly but the relatively low number of votes that they both secured showed that there are political divisions," said Andres Abadia, chief LatAm economist at Pantheon Macroeconomics. "Peru is used to this kind of political uncertainty and risk so most of the focus over the coming weeks will be on the Middle East situation and the effect of elevated oil prices in domestic inflation and how the central bank will react." Elsewhere, Hungarian assets rallied after the country's veteran nationalist leader Viktor Orban lost power to the upstart centre-right Tisza party in Sunday's national election. Hungary's benchmark share index ended up gaining 5% to a record high and the forint rose 3% to a four-year high of 362.85 per euro, with the currency at one point on track for its biggest daily jump since 2008. International bonds maturing in 2050 and 2052 added as much as 1.6 cents on the dollar. Tisza's Peter Magyar is expected to open the door to greater cooperation with the European Union and democratic reforms that could pave the way for Brussels releasing 19 billion euros worth of frozen funds that could help revive a stagnating economy. "How fast and to which extent a new government will change domestic policies remains to be seen. Still, the relegation of Orban to the opposition benches will likely make Hungary a better place for domestic and foreign investment," said Holger Schmieding, chief economist at Berenberg. MIDEAST UNCERTAINTY REMAINS Tensions lingered in the Middle East as the U.S. military began a blockade of ships leaving Iran's ports, and Tehran threatened to retaliate against ports of its Gulf neighbors after weekend talks on ending the war broke down. U.S. President Donald Trump said Tehran had been in touch and wanted to make a deal, but he would not sanction any agreement allowing them to have a nuclear weapon. Oil prices crossed over $100 a barrel on expectations that supplies through the strategic Strait of Hormuz could continue to be restricted for a while. MSCI's index tracking Latin American equities added 0.6%, while a similar currencies gauge was up 0.4%. Brazil's real and Chile's peso rose 0.1% and 0.7%, respectively. Oil exporter Colombia's peso firmed 1.5%. Shares of Brazilian energy companies were higher, with Petrobras and Vale adding 1.7% each. Argentina's YPF was up0.5%. Meanwhile, Trump said that U.S. focus could turn to Cuba after the current tensions with Iran concluded. Key Latin American stock indexes and currencies at 20:00 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1541.73 -0.37 MSCI LatAm 3353.33 0.62 Brazil Bovespa 198132.23 0.41 Mexico IPC 69639.71 -0.55 Chile IPSA 11171.44 0.87 Argentina MerVal 2993131.0 -0.19 5 Colombia COLCAP 2347.51 1.99 Currencies Latest Daily % change Brazil real 4.9967 0.13 Mexico peso 17.295 -0.03 Chile peso 891.41 0.66 Colombia peso 3585.5 1.5 Peru sol 3.37 0.58 Argentina peso 1,354.5 1.24 (interbank) Argentina peso 1,385.0 0.36 (parallel) (Reporting by Johann M Cherian and Twesha Dikshit in Bengaluru; Editing by Aurora Ellis and Nick Zieminski)