May 1 (Reuters) - Emerging market stocks and currencies

slipped on Wednesday in thin trading, with many regional markets

closed for the Labour Day or May Day holiday, ahead of a Federal

Reserve interest rate decision later in the day.

The MSCI indexes for emerging market currencies

and stocks slipped 0.1% each.

Traders were focused on the Fed, which is set to conclude

its meeting on Wednesday with a new statement and comments from

Chair Jerome Powell that could give a clearer sense of how

recent sticky inflation readings have changed expectations for

rate cuts this year.

"The Fed must respond to three straight month jumps in

inflation and probably take a step back in its plans to cut the

interest rates this year," said Ipek Ozkardeskaya, senior

analyst at Swissquote Bank.

The U.S. central bank is expected to hold interest rates in

5.25%-5.50% range.

Emerging market currencies ended their second month lower in

April as investors dialled back expectations for the timing and

magnitude of U.S. rate cuts this year and tensions between

Israel and Iran sparked a rush to the safe-haven dollar.

In Brazil, the central bank chief said on Tuesday that he

did not want to commit to a specific terminal rate at the end of

the current cycle of interest rate cuts.

Data showed Peruvian consumer price inflation fell 0.05% in

April, compared to 1.01% advance in March.

Peru's economy will likely expand by 3.1% this year, the

economy ministry said late on Tuesday, up slightly from a

previous forecast of 3.0% growth.

Saudi Arabia's real gross domestic product (GDP) decreased

1.8% year-on-year in the first quarter, flash estimates showed,

hurt by a decline in oil activities.

South Korea's exports rose for a seventh month in April as

strong demand for chips continued to lead growth while

automobile sales and U.S. shipments climbed to record highs.

Emerging markets such as China, Taiwan, Brazil, India, South

Korea, Mexico, Turkey, Argentina, Poland, South Africa,

Colombia, Chile, Czech Republic, Peru, Romania and Hungary were

closed on Wednesday, impacting trading volumes.