* Czech stocks hit 7-year low, Polish near 4-month lows * Brexit fears weigh on regional assets, could boost volatility * MSCI emerging market indices review adds to risk By Sandor Peto and Bartosz Lada BUDAPEST/WARSAW, June 13 (Reuters) - Czech stocks hit a seven-year low on Monday, leading central European markets lower as concerns that Britain will vote to leave the European Union in a referendum on June 23. Prague's main stock index fell 2.2 percent by 0846 GMT, a bigger fall than 1.3-1.4 percent in Western European bourses Frankfurt and Paris. Warsaw's blue chip equities index approached four-month lows, shedding 1.2 percent. Financial and energy sector stocks, which have a bigger weight in the Prague index than elsewhere in Central Europe, led the decline of shares in the region. Energy shares were also dented by a fall in crude prices which helped widen the losses of the region's most liquid currencies late on Friday, after domestic markets closed. The forint and the zloty shed 0.4 and 0.6 percent, respectively, from Friday's close. "High probability of Brexit (Britain leaving the European Union) remains the biggest short-term risk," Pekao analysts said in a note. Expectations that MSCI will add China to its indices in a review due on Tuesday is also weighing on equities in the region. Such a move could lead to many investment funds reducing their exposure to other emerging economies, market participants said. Erste analysts said in a note that MSCI was likely to change its indices gradually, spreading the change over a year, which means "the selling pressure caused could be limited". The U.S. Federal Reserve's two-day meeting which starts on Tuesday will be closely watched as dovish remarks could help bond markets while hawkish ones could hit emerging market currencies, analysts said. "However, we expect the Fed to do nothing now," one Budapest-based fixed-income trader said. "The yield curve is steepening as we track Poland and the euro zone peripheries ... and this is caused by Brexit fears and perhaps partly the (Orlando) terror attack in the U.S.," the trader added. Poland's 10-year government bond yield rose 2 basis points to 3.12 percent. Serbia's sale of 2-year dinar-denominated government bonds on Monday is attractive due to a recent pick-up in yields and expectations that the Serbian central bank will cut its rates further, Raiffeisen analyst Stephan Imre said in a note. "Of course, the new Serbian government - to be presented at the end of this week at the earliest - has to fulfil the optimistic expectations amongst market participants in terms of an ambitious reform agenda," Imre added. CEE SNAP AT 1046 MARKETS SHOT CET CURRENCIES Late Prev Dail Chan st ious y ge bid clos chan in e ge 2016 Czech <EURCZK 27.0 27.0 -0.0 -0.1 crown => 280 230 2% 1% Hungary <EURHUF 312. 311. -0.3 0.80 forint => 1400 0550 5% % Polish <EURPLN 4.38 4.35 -0.5 -2.8 zloty => 20 80 5% 3% Romanian <EURRON 4.51 4.51 +0. 0.07 leu => 60 80 04% % Croatian <EURHRK 7.54 7.54 +0. 1.31 kuna => 00 09 01% % Serbian <EURRSD 123. 123. -0.0 -1.4 dinar => 3000 1900 9% 8% Note: calcula prev clos 1800 daily ted ious e at CET change from STOC KS Late Prev Dail Chan st ious y ge clos chan in e ge 2016 Prague 821. 840. -2.2 -14. 47 05 1% 10% Budapest 2616 2651 -1.3 +9. 3.20 9.61 4% 37% Warsaw <.WIG20 1761 1782 -1.1 -5.2 > .25 .02 7% 7% Buchares 6357 6410 -0.8 -9.2 t .39 .34 3% 4% Ljubljan <.SBITO 690. 693. -0.3 -0.8 a P> 58 19 8% 0% Zagreb <.CRBEX 1694 1694 +0. +0. > .95 .96 00% 31% Belgrade <.BELEX 624. 624. +0. -3.0 15> 73 31 07% 1% Sofia <.SOFIX 446. 445. +0. -3.1 > 26 27 22% 8% BOND S Yiel Yiel Spre Dail d d ad y (bid chan vs chan ) ge Bund ge in Czech spre Republic ad 2-year <CZ2YT= -0.0 -0.0 +05 -3bp RR> 19 27 2bps s 5-year <CZ5YT= 0.09 -0.0 +05 -2bp RR> 9 14 2bps s <CZ10YT 0.48 0 +04 +0b 10-year =RR> 8 7bps ps Poland 2-year <PL2YT= 1.78 0.02 +23 +2b RR> 7 4 3bps ps 5-year <PL5YT= 2.33 0.02 +27 +2b RR> 3 3 6bps ps <PL10YT 3.12 0.02 +31 +3b 10-year =RR> 7 8 0bps ps FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M inte rban k Czech <CZKFRA 0.26 0.22 0.2 0 Rep ><PRIBO R=> Hungary <HUFFRA 0.99 0.91 0.93 1 ><BUBOR => Poland <PLNFRA 1.70 1.68 1.66 1.68 ><WIBOR 5 => Note: are for FRA ask quotes prices (Additional reporting by Jason Hovet in Prague)