Updated at 0915 GMT

By Johann M Cherian

June 28 (Reuters) -Most emerging markets' stocks and currencies rose on Friday, ahead of key U.S. inflation data, with the rand gaining as South Africans waited for cabinet announcements, while India marked its entry into a widely observed debt index.

The rand ZAR= rebounded 1.5% to 18.2 to the dollar after hitting a two-week low in the previous session, while the yield on the benchmark bond dropped over 22 basis points (bps).

Investors are on tenterhooks ahead of executive announcements in the country's first coalition government, as disagreements remained between parties more than a week after President Cyril Ramaphosa was sworn in.

"We believe ministerial positions in the Presidency, Finance, and other key reform areas, such as Public Enterprises, are unlikely to be offered to opposition parties," said Gina Schoeman, South Africa economist at Citigroup.

"As a multi-party coalition, the (government of national unity) will be highly complex, bringing more uncertainties with regard to policy making."

India's rupee INR=IN jumped in early trading, aided by likely inflows into government bonds upon their inclusion in the widely tracked JPMorgan emerging market debt index. The currency was last muted, while the benchmark bond IN10YT=RR edged up 1 basis point.

In the run up to the inclusion, foreign investors have already net bought government bonds worth nearly $11 billion.

MSCI's index tracking equities in developing markets .MSCIEF climbed 0.4%, while an index tracking currencies inched up 0.2% against the dollar.

The equity index is on track for a monthly and quarterly gain of 3.6% and 4.2% respectively, while the currencies index is set to end June and the second quarter flat.

Emerging market bonds saw their largest weekly debt inflow in three months of $800 million, according to analysts at BofA Global Research, while equities saw inflows of $5.6 billion over the past four weeks.

U.S. Personal Consumption Expenditure data, due at 1230 GMT, would offer clues on the Fed's policy trajectory and the consequent strength of the dollar.

Poland's zloty EURPLN= slipped 0.1% against the euro. Data showed inflation in June rose 2.6% on an annual basis, marginally surpassing expectations of 2.5%.

Kenya's shilling KES= inched 0.2% lower with investors attention on any uptick in violent developments.

Elsewhere, elections are underway in Iran against a backdrop of geopolitical tensions in the Middle East and domestic discontentment against economic hardship.

Reporting by Johann M Cherian in Bengaluru; Editing by Anil D'Silva

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