By Pranav Kashyap

May 8 (Reuters) - Brazil's currency jumped on Thursday, following an interest rate hike by its central bank, while Romanian assets continued their downward spiral after right-wing eurosceptic George Simion won the first roundof presidential elections there.

Brazil's real BRL= gained 1.31%, poised for its strongest percentage gain in nearly two weeks after its central bank hiked interest rates to their highest in nearly 20 years.

This was set against an inflation rate of 5.49%, far above the official 3% target, with policymakers stressing that the current environment calls for a "significantly contractionary monetary policy for a prolonged period".

Still, its stock index .BVSP leapt 2.2%, hitting its highest in over nine months.

"No explicit guidance was given for June, suggesting that the evolution of data would dictate whether this was the last hike of this cycle or not," analysts at Barclays said.

Global uncertainties, triggered by sweeping U.S. trade tariffs, have led emerging market countries to emphasize the need for greater caution as they navigate a global trade realignment.

However, Latin American countries have been shielded from extreme selling pressure due to relatively lower U.S. import tariffs, unlike many other economies.

"We shift our stance on EM local debt to mildly bullish from neutral with valuations suggesting better opportunity in LatAm and CEEMEA," said Himanshu Malik, senior global emerging markets rates strategist at HSBC.

Mexico's peso MXN= gained 0.25%, while its local bourse .MXX was flat, after fresh data showed the country's annual inflation rate matched market expectations in April, accelerating from the previous month but still within the central bank's target range.

Its next policy meeting is due next week.

The MSCI gauge for Latin American currencies .MILA00000CUS rose 0.9%, while the regional equity index .MILA00000PUS jumped 2.28% to its highest level in seven months.

In Chile, consumer prices rose 0.2% in April from the previous month, slightly below the 0.3% increase expected by economists in a Reuters poll. The Chilean peso CLP= was up 0.16% while Santiago's stock index .SPIPSA was flat.

Elsewhere, Romania's leu EURRON= continued to hover near record lows, while its 10-year bond yields RO10YT=RR rose to their highest levels since late-2022 after Sunday's first-round presidential vote.

Bucharest's stocks index .BETI lost 0.4%.

The Indian rupee INR= fell 1%, logging its biggest single-day drop in over 2-1/2 years, while Pakistan's benchmark index .KSE recorded its largest single-day drop in over five years.

The markets came under pressure after the Indian government said it had "neutralised" attempts by Pakistan to "engage" several military targets. Pakistan, meanwhile, said it had shot down 25 drones from India in its airspace.

New Delhi's missile strikes on Pakistan and Pakistani Kashmir on Wednesday, marked the worst confrontation between the nuclear-armed neighbors in over two decades.

Key Latin American stock indexes and currencies:

(Reporting by Pranav Kashyap and Medha Singh in BangaloreEditing by Tomasz Janowski)

((pranav.kashyap@tr.com; +919886482111;))