* Hungary's central bank expected to cut rates by 75 bps

* Fed minutes due at 1900 GMT

* Yuan near 4-month high on firmer fixing

* Stocks up 0.5%, currencies basket up 0.4%

Nov 21 (Reuters) - Emerging markets currencies hit a year-and-a-half high on Tuesday ahead of an interest rate decision in Hungary, while Argentine local assets will be in focus after presidential-elect Javier Milei's surprise win over the weekend.

MSCI's basket of developing markets currencies spiked 0.4%, while the index tracking emerging markets equities gained 0.5%.

The EM indexes have surged over the past few sessions, and the currencies index notched its highest levels since April 2022 on optimism that U.S. interest rates have peaked, with investors starting to price in rate cuts in 2024.

Jakob Ekholdt Christensen, senior EM strategist at BankInvest believes that declining U.S. long-term yields on signs of benign inflation pressures, easing oil prices and indications of stability in the Chinese economy and property sector have been reasons for improving investor mood.

"This positive environment continuing for markets through year-end hinges on any changes to the Fed keeping to this narrative that they're done raising rates," he said.

Investors await the Federal Reserve's monetary policy minutes due at 1900 GMT, and will parse them for any signs of hawkish rhetoric.

In central and eastern Europe, the Hungarian forint inched 0.1% up against the euro ahead of a domestic central bank monetary policy decision due at 1300 GMT.

Economists largely expect the regulator to trim borrowing costs by 75 basis points, lowering the benchmark interest rate to 11.50%.

Trading in Poland's zloty was muted after local central banker Wieslaw Janczyk was quoted by state media saying he saw significant room to cut interest rates in 2024 and beyond but much will depend on the formation of a new government.

Argentine onshore assets will be in close focus on the first day of domestic trading after Milei's victory in local presidential elections.

The south American economy's offshore assets surged on Monday following the results.

Elsewhere, China's yuan extended its winning streak, strengthening 0.4% to a near four-month high, on signs that the local central bank supported the currency through its midpoint fixing, and hopes of Sino-U.S. ties stabilising also aided optimism.

Russia's rouble extended the previous session's gains and was trading at 87.8 to the dollar after finance minister Anton Siluanov supported the central bank's hawkish stance on monetary policy and added inflation could not be allowed to spiral.

Meanwhile, South Africa's top index slipped 0.1% weighed down by an over 22% tank in Sibanye Stillwater shares after the miner launched $500 million worth of senior unsecured guaranteed convertible bonds. (Reporting by Johann M Cherian in Bengaluru)