By Twesha Dikshit and Ragini Mathur

Jan 13 (Reuters) - Emerging market equities rose on Tuesday as investors assessed local economic data and awaited a key U.S. inflation report, while geopolitical tensions remained in focus.

The U.S. threatened a new tariff of 25% on any country doing business with Iran, adding to warnings of military action. President Donald Trump has weighed a range of options in response to Iran's deadly crackdown on nationwide protests.

"Geopolitics remains a top concern, with Iran, Greenland, and Venezuela dominating headlines," said Tom Nelson, head of market strategy at Franklin Templeton Investment Solutions.

"Equities, however, continue to levitate, starting 2026 in stellar fashion despite the noise. Cutting through the clutter, the view looks constructive from 30,000 feet, with the global economy still in solid shape and fiscal stimulus in major countries potentially providing a front-loaded growth boost."

The MSCI emerging market stock index .MSCIEF rose 0.5%, hitting an intraday record high, while a corresponding currency gauge .MIEM00000CUS was muted. EM equities have posted gains of almost 5% in the first two weeks of the year.

The Trump administration's decision to open a criminal investigation into Federal Reserve Chair Jerome Powell on Monday drew sharp criticism, renewing concerns about the central bank's independence and driving the dollar lower in a measured response.

Meanwhile, Trump will meet Venezuelan opposition leader Maria Corina Machado on Thursday, a White House official said on Monday.

INFLATION DATA, RATE CUT PATH IN FOCUS

Hungary's inflation fell to a 15-month low of 3.3% in December, in line with forecasts, while services price growth remained strong, official data showed.

The Hungarian forint EURHUF= was 0.2% weaker against the euro, while the benchmark stock index .BUX ticked higher.

The country's central bank left rates at 6.5% in December, at the European Union's joint highest level, while leaving the door open to easing after cutting its 2026 inflation forecast.

ING analysts forecast a first cut in February and a total of 50 basis points of reductions this year.

Czech consumer prices rose 2.1% year-on-year in December, official data showed. Local equities .PX added 0.2%, while the crown EURCZK= was little changed.

Romania's benchmark index .BETI was a bright spot, rising 1.6% in a ninth consecutive session of gains. Egypt's blue-chip index .EGX30 was up 2% after notching a record close in the prior session.

Investors will keep a close eye on the U.S. consumer price index report later in the day to gauge expectations for a Fed rate cut.

For TOP NEWS across emerging markets nTOPEMRG

For CENTRAL EUROPE market report, see CEE/

For TURKISH market report, see .IS

For RUSSIAN market report, see RU/RUB

(Reporting by Twesha Dikshit and Ragini Mathur in Bengaluru. Editing by Mark Potter)

((Twesha.Dikshit@thomsonreuters.com))