By Shashwat Chauhan

Nov 25 (Reuters) -Most emerging market currencies advanced on Monday as the dollar weakened globally after U.S. President-elect Donald Trump nominated Wall Street veteran Scott Bessent as Treasury secretary, pulling Treasury yields lower.

Trump said late on Friday he would nominate prominent investor Bessent as U.S. Treasury secretary, which sent the greenback and Treasury yields lower, giving a leg up to emerging market assets.

Some strategists said his nomination was a relief as he understands markets and his appointment could reduce the chance of severe tariffs.

Jane Foley, senior FX strategist at Rabobank wrote that Bessent's appointment has "raised the possibility that some 'Trump trades' may be watered down".

South Africa's rand ZAR=D3 was up 0.2%, while most dollar-pairs in emerging Europe also rose, with the Czech crown CZK= among top gainers, last up 0.7%.

Against the euro, Hungary's forint EURHUF= was an outlier, down 0.6%, briefly hitting its lowest since December 2022.

Romania's international dollar-denominated debt fell after results showed hard-right NATO critic Calin Georgescu and centre-right opposition party leader Elena Lasconi will likely face each other in a Dec. 8 presidential run-off vote.

The bond maturing in 2053 XS2571924070=TE was the hardest hit, down more than 1.5 cents on the dollar.

Israel's shekel ILS= was last up 0.7% against the dollar ahead of a local interest rate decision, with consensus tilted towards the Bank of Israel keeping rates steady at 4.5%.

EM assets have experienced a torrid November as investors mull the implications of Trump's policies on trade, tariffs and immigration.

"EM FX and rates continue to be tightly linked to U.S. assets. Amidst geopolitical tensions and U.S. policy uncertainty, external macro factors will dominate EM asset performance," Phoenix Kalen, Societe Generale's global head of emerging markets research wrote in a note.

Continued repricing of the Federal Reserve's interest rate path has also helped the dollar globally, weakening EM currencies.

Minutes from the Fed's most recent policy meeting, where it opted to cut interest rates by 25 basis points, are due to be released on Tuesday.

MSCI's index for emerging market equities .MSCIEF had added 0.6% by 1027 GMT, as shares in emerging Asia, which account for the bulk of the index's weight, rose.

India's benchmark Nifty 50 .NSEI was last up more than 1% as the ruling alliance's victory in a Maharashtra state election over the weekend boosted sentiment. .BO

Most stocks linked to billionaire Gautam Adani also reversed some of the sharp falls of the previous two sessions posted after the founder's indictment for fraud by U.S. prosecutors and arrest warrants issued for him over an alleged $265 million bribery scheme.

Chinese equities lagged with the blue-chip CSI 300 .CSI300 hitting a more than five-week low and the Hong Kong benchmark .HSI clocking its weakest close since September.

Late on Friday, credit ratings agency Moody's upgraded Saudi Arabia's rating to "Aa3" from "A1", citing the country's efforts to diversify beyond its oil economy. Prices of the country's dollar-denominated bonds rose, with the 2054 maturity XS2747599509=TE outperforming, up 0.9 cents on the dollar.

Moody's also upgraded Cyprus' long-term issuer and senior unsecured ratings to A3 from Baa2, citing a "material improvement" in fiscal and debt metrics that the rating agency expected to be sustained.

HIGHLIGHTS:

** China c.bank injects $124 bln into banking system via one-year policy loans

** IMF approves third review of Sri Lanka's $2.9 bln bailout

Reporting by Shashwat Chauhan in Bengaluru

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