* EM equities, FX gauges set for weekly gains

* US payrolls data at 1230 GMT

* Turkey inflation up near 70%, highest since 2022

May 3 (Reuters) - A gauge of emerging market equities rose to a nearly two-year high on Friday, spurred by expectations that the U.S. Federal Reserve will not raise interest rates further and signs of more economic support for China.

The MSCI EM stocks index rose by 0.7% and was on track for weekly gains. The benchmark touched its highest level since June 2022 earlier in the session.

Bourses in Istanbul, Johannesburg, Taiwan and Hong Kong rose in the range of 0.4% and 1.5%, with the latter on its the longest winning streak since January 2018, buoyed by China's efforts to boost the economy.

Wall Street was also set for a lift from Apple's record share buyback and better-than-expected results ahead of U.S. monthly jobs data.

Emerging markets assets took comfort this week from the Fed dismissing the possibility of further rate hikes this year even though Chair Jerome Powell set the stage for a potentially extended hold of the policy rate.

"The US payrolls report is a factor though, but given the Fed has told us they are not looking at hikes, good news on the data front will likely be good for risky assets and the upside for the USD should be limited," said Chris Weston, head of research at Pepperstone.

The data, due at 1230 GMT, is expected to show U.S. job growth slowed to a still-solid clip in April.

Most developing world currencies were also set for weekly gains as the dollar edged lower. The Turkish lira held steady after data showed the country's annual consumer price inflation climbed to 69.8% in April, below expectations but the highest since late-2022.

The central bank has hiked rates by 3,650 basis points since June before holding steady last month, but has said it will tighten further in the case of a significant deterioration in inflation.

S&P Global is set to review Turkey's "B" credit rating later in the day. Fitch in March upgraded Turkey's rating to "B+" from "B", saying tighter approaches to monetary policy were helping combat inflationary trend.

The South African rand edged down against the dollar, while the Russian rouble gained.

Among central and eastern European currencies, the Czech crown traded near a 12-week-high against the euro after hawkish forecasts from the Czech National Bank on Thursday.

HIGHLIGHTS:

** Turkey says Israel trade halted until permanent Gaza ceasefire

** Indonesia still sees 5% economic growth this year despite weak exports

** Thai inflation rate positive in April, still below central bank target

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(Reporting by Sruthi Shankar in Bengaluru; editing by Barbara Lewis)