* Hamas attack on Israel curbs risk appetite

* Israel bonds see sharp selloff, shekel hits over 7-yr low

* Currencies of oil importing nations fall

* EM stocks down 0.2%, FX rangebound

Oct 9 (Reuters) - Assets in emerging economies were under pressure on Monday as a risk-off mood gripped markets after the attack on Israel by Palestinian group Hamas drove up oil prices and sent the shekel tumbling to a more than seven-year low.

The shekel dropped to 3.92 per dollar in early trade, hitting its lowest since early 2016 though it pared losses later after the Bank of Israel said it will sell up to $30 billion of foreign currency in the open market to maintain stability.

Israel's dollar-denominated government bonds also took a sharp hit, with the bond maturing in 2120 dropping more than 5 cents on the dollar. Key Tel Aviv share indices, inched lower after slumping nearly 7% on Sunday.

MSCI's emerging market equities index was down 0.2% by 8:42 GMT, while currencies were muted against a stronger dollar.

The conflict in the Middle East has given a fresh boost to oil prices, adding to worries over inflation and the likelihood of tighter monetary policy in major global economies especially given last week's U.S. jobs report.

"Tensions in the region will inevitably have an impact on oil prices given risk of disruption to supply if the situation escalates and also on the dollar as geopolitical risks could fuel safe haven flows," said Jon Harrison, managing director of emerging market macro strategy at TS Lombard.

"For EM central banks there will be growing pressure to raise interest rates in response to inflation risks and to defend their currencies."

The geopolitical worries rippled through other emerging markets, dealing another blow to Egypt's international government bonds already bruised by a recent Moody's downgrade.

Currencies of oil importers fell, with the Indonesian rupiah and the Thai baht down 0.5% each against the dollar while the Indian rupee inched 0.2% lower.

Shares in India's Adani Ports, which owns a major port in Israel fell 3.7% while stocks in Turkey, another major oil importer, fell 1.4%.

Equities in mainland China fell 0.1% on the first day of trading following a week-long holiday.

For GRAPHIC on emerging market FX performance in 2023, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2023, see https://tmsnrt.rs/2OusNdX

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(Reporting by Amruta Khandekar and Johann M Cherian, Editing by Angus MacSwan)