EMERGING MARKETS-EM FX steady, stocks reel as bond selloff spreads on inflation fears

* Global bonds selloff spills over into EMs

* Indonesia rupiah at record low, ​stocks at one-year ⁠lows

* Romania's leu weakens 1.5% against the euro

* MSCI EM ​FX steady, stocks off 0.3%

May 18 (Reuters) - Most emerging market stocks were down on Monday while currencies were muted, after both assets logged declines last week, ​as ‌inflation worries stemming from the deadlocked Iran war led to a rout in global bonds, dampening investor appetite.

MSCI's index tracking global EM currencies was little changed, ⁠while the stocks gauge was down 0.3%. Both indexes had marked their biggest ⁠weekly losses last week since March 2 - just after ​the Iran conflict began.

Bonds from Tokyo to New York extended losses on Monday as inflation fears stoked investor wagers on rate hikes from global central banks. G7 finance ministers in a meeting in Paris looked to find common ground to tackle imbalances from the selloff.

"The concern ​is that ‌higher yields do not stay confined to bond markets, but can weigh on equity valuations, particularly in growth and technology sectors, while also increasing pressure on governments carrying large debt burdens," said Lale Akoner, global market analyst at eToro.

"Bond markets appear to be signalling that investors should prepare for a more volatile environment," she said.

The yield on the benchmark 10-year U.S. Treasury eased slightly to 4.59% - still its ​highest in about a year, while bonds in energy importing EMs were also pressured.

Sri Lanka's 2033 maturity bond fell 1.2 cents on the ‌dollar, while those in markets such as Kenya fell over 0.7 cents on average, TradeWeb data showed.

Most Asian equity bourses reeled under the weight of the bond selloff. South Korea's KOSPI ‌was an outlier, up 0.3% on a boost from Samsung Electronics, as investors found relief in efforts to avert a workers' strike at the chip giant.

Indonesian stocks tumbled 2.5% to below their lowest in a year in their fifth session of losses, while its ​rupiah weakened 1% to another record low of 17,688 versus the U.S. dollar.

On the conflict front, the United Arab Emirates and Saudi Arabia reported drone incidents, a day ‌after U.S. President Donald Trump warned that Iran must act "fast" after efforts to end the war stalled.

Stocks in emerging Europe were mixed, with those in Romania down 0.4%. Hungarian and Polish stocks gained 0.2% and 0.7% respectively.

Romania's leu depreciated 1.5% against the euro, at another record low. The ⁠country has ⁠the biggest budget deficit among EU members.

The currency has been languishing at record lows after ‌the government was toppled in a no-confidence vote earlier this month. That could bring political deadlock and put EU funds and Romania's credit ratings at risk.

Turkey's lira was ​muted and its stocks fell 1.5%. South ​Africa's rand gained 0.4% as gold prices inched higher, but stocks lost 0.4%.

HIGHLIGHTS:

** China's economy ‌loses steam at start of Q2 as consumption, output disappoint in April

** S&P lifts Nigeria's ratings on improving macroeconomic profile

** Israel's economy shrinks in first quarter but seen rebounding after Iran war

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For RUSSIAN market report, see (Reporting by Purvi Agarwal in Bengaluru; Editing by Aidan Lewis)