* LatAm stocks down 1.5%, FX off 0.2%

* Crude prices hit $100/barrel in a first since May

* Mexico's annual inflation slows more than expected

* S.Africa's rand slides after cenbank's surprise hold

decision

* Turkey leaves interest rates on hold as expected

(Updates with afternoon trading levels)

By Johann M Cherian and Avinash P

July 23 (Reuters) - Most Latin American currencies and

stocks weakened on Thursday as investors evaluated potential

economic consequences of the widening Middle East conflict,

which pushed oil prices above $100 a barrel for the first time

since May.

MSCI's Latin American equity index slid

1.5%, easing from a two-month high.

A regional currencies gauge also slipped

0.2% as investors flocked to the safe-haven dollar. Chile's peso

depreciated 1.3% to hit its lowest levels since November

2025. The LatAm country is a net oil importer.

Brent crude prices rose 7% as attacks on Saudi

tankers in the Red Sea by Yemen's Houthi militia intensified

disruptions to energy supplies and signaled a broadening

conflict.

"A lot of these countries that produce oil are not net

producers because they have to also import oil and other

chemicals to refine oil and even after refining, they have to

import gasoline as well. So, the bill at the government level is

not always a positive one," said Eduardo Ordonez Bueso, an

emerging markets debt portfolio manager at BankInvest.

Latin America has been relatively shielded from the Middle

East conflict compared to broader emerging markets, given that

many countries in the region are energy producers.

"It's been a tough day for markets... with the price of a

barrel of Brent crude hopping back over the psychologically

important $100 a barrel benchmark," said Danni Hewson, AJ Bell

head of financial analysis.

However, energy prices staying at current levels for a

prolonged period could weigh on economic growth, push up

consumer inflation and prompt central banks to hike interest

rates.

Brazilian oil giant Petrobras advanced 1.5%,

while Argentina's YPF and U.S.-listed shares of

Ecopetrol were marginally higher.

Data showed the region's second-largest economy, Mexico,

contracted in May from April.

Separately, the annual inflation rate decelerated for an

eighth consecutive fortnight in early July, although market

participants would be keen to see how the recent spike in crude

prices adds to price pressures in the months ahead.

The data comes as Mexico's central bank held its benchmark

interest rate at 6.5% last month while warning about persistent

inflationary risks.

Mexico's stocks benchmark edged 1.1% lower, while the

peso dropped 0.9%.

Investors were also keeping an eye on developments in Brazil

after a U.S. tariff rate of 25% took effect on Wednesday and the

country is bracing for an additional 12.5% in duties following

the verdict of a U.S. forced labor probe.

The real slipped 0.7%, while the Bovespa index

declined 0.5% as Petrobras' gains limited losses.

Peru's sol was the outlier, firming against the

dollar, while Colombia's peso was muted. Equities in the

two countries and were down 1.7% and

up 0.2%, respectively.

Elsewhere, South Africa's rand slid 2.9% after the

central bank unexpectedly kept its main lending rate unchanged.

Turkey's central bank also left its key interest rate on

hold at 37%. The equities index dipped 0.4%, while the

lira was flat at 47.23 per dollar.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

Equities Latest Daily %

change

MSCI Emerging Markets 1668.91 0.87

MSCI LatAm 3044.43 -1.47

Brazil Bovespa 176629.75 -0.52

Mexico IPC 66589.22 -1.06

Chile IPSA 10922.79 -0.79

Argentina Merval 3335665.9 -1.305

5

Colombia COLCAP 2300.75 0.16

Currencies Latest Daily %

change

Brazil real 5.09 -0.71

Mexico peso 17.5253 -0.87

Chile peso 947.7 -1.34

Colombia peso 3201.4 -0.11

Peru sol 3.3936 0.16

Argentina peso (interbank) 1488.5 -0.37

Argentina peso (parallel) 1530 1.63