STOCKHOLM, June 4 (Reuters) - Swedish banking stocks reversed early losses amid lingering worries over the banks' exposure in the Baltic region, with Swedbank gaining 4.7 percent while SEB rose 0.7 percent.

Worries that Latvia, mired deep in recession, could have to devalue its currency have weighed on the stocks of some of Sweden's top banks over the past few days due to the billions of crowns worth of loans extended by the banks in the region.

Analysts said trade was volatile, with sentiment shifting back and forth although the Baltics remained the dominant theme.

"I'm a bit surprised by the storm we've seen. This should have been priced in already in March," said a banking analyst who asked not to be identified.

"We're moving closer to it (a devaluation), but the timeframe is hard to predict. Now we can only wait and see what happens."