CEE MARKETS-Hungarian assets gain after Orban's election victory

* PM Orban's election victory removes policy risks

* Budapest stocks rise, OTP bucks trend after Raiffeisen plunges

* Hungary's strong economy overshadows political risks

(Recasts with new analyst comments, background) BUDAPEST, April 9 (Reuters) - Hungarian stocks, bonds and currency all gained on Monday after Prime Minister Viktor Orban won a third term in Sunday's election, eliminating the risk of unpredictable policy changes Budapest's main stock index rose 0.8 percent by 1325 GMT., A group of stocks, including holding companies Konzum and Opus, in which Orban ally Lorinc Meszaros holds significant stakes, surged by 15 percent. OTP, the region's biggest independent bank, bucked the trend, shedding more than 2 percent. Profit-taking hit other bank stocks in the region as well, after Vienna-based regional bank Raiffeisen plunged 13 percent plunge, Equilor brokerage analyst Gabor Bukta said. But most Budapest shares rose, the forint gained 0.1 percent to 311.9 against the euro, and the yield on Hungary's 10-year government bonds was fixed lower by 10 basis points at 2.46 percent. "The forint has strengthened a tad due to the elimination of any tail risk of a hung parliament that could have led to political, economic and monetary uncertainty," Nordea analyst Morten Lund said in a note. Investors are now focusing on stability rather than the political risk, after Orban's Fidesz party won a two-thirds parliamentary majority. However, investors will watch to see whether Orban uses his super-majority for policies that weaken the rule of law, some analysts said. "It will be important to see if the prime minister and others refer to such plans," said Gergely Urmossy, analyst of Erste in Budapest. If that happens, low interest rates and a narrowing current account surplus could increase the forint's volatility later this year, he said. Even without such measures, Hungary's relations with Brussels and some European Union capitals might remain strained as Orban leads resistance in Central Europe to the EU's quotas to distribute migrants. The economy, however, is on the right track, with growth around 4 percent, inflation well within the central bank's target range and the budget deficit below the EU's threshold of 3 percent of economic output, analysts said. Urmossy said the Fidesz government was likely to keep budget discipline as a priority, and may deliver a minor budget adjustment later this year to contain the deficit.

CEE SNAPSHOT AT MARKETS 1525 CET

CURRENCI ES

Latest Previous Daily Change bid close change in 2018 Czech <EURCZK= 25.3650 25.3810 +0.06% +0.70% crown > Hungary <EURHUF= 311.9000 312.2500 +0.11% -0.32% forint > Polish <EURPLN= 4.1950 4.1962 +0.03% -0.44% zloty > Romanian <EURRON= 4.6629 4.6625 -0.01% +0.36% leu > Croatian <EURHRK= 7.4300 7.4255 -0.06% +0.00% kuna > Serbian <EURRSD= 118.0700 118.1500 +0.07% +0.36% dinar > Note: calculated from 1800 CET

daily change

Latest Previous Daily Change close change in 2018 Prague 1128.29 1128.820 -0.05% +4.65%

0

Budapest 38260.29 37962.26 +0.79% -2.84% Warsaw 2259.91 2258.80 +0.05% -8.18% Ljubljana <.SBITOP 828.03 823.66 +0.53% +2.68% > Zagreb 1804.07 1801.44 +0.15% -2.11%

BONDS

Yield Yield Spread Daily (bid) change vs Bund change

in

Czech spread

Republic

2-year <CZ2YT=R 0.7750 -0.0910 +135bps -10bps

R>

5-year <CZ5YT=R 1.2290 -0.0020 +132bps -1bps

R>

10-year <CZ10YT= 1.8070 -0.0330 +130bps -4bps

RR> Poland

2-year <PL2YT=R 1.4970 0.0130 +207bps +1bps

R>

5-year <PL5YT=R 2.2690 -0.0220 +236bps -3bps

R>

10-year <PL10YT= 3.0520 -0.0360 +255bps -4bps

RR>

FORWARD RATE AGREEMEN

T

3x6 6x9 9x12 3M

interban k

Czech Rep 0.95 1.07 1.21 0.90

<PRIBOR=

>

Hungary 0.07 0.10 0.18 0.03 Poland 1.74 1.75 1.77 1.70

Note: FRA are for ask prices quotes

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(Reporting by Sandor Peto Editing by Larry King)