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Colombia central bank rate decision on tap

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Mexico economy grows 0.2% in Q1 from previous quarter

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Brazil's job creation outpaces expectations in March

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Argentina lower house approves Milei reform bill

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Latam FX down 0.8%, stocks shed 1.4%

By Bansari Mayur Kamdar

April 30 (Reuters) - Stocks and currencies in Latin

America fell on Tuesday, with both indexes headed for monthly

losses as investors reassessed the Federal Reserve's interest

rate easing path and geopolitical tensions drove a rush to

safe-haven assets.

The MSCI index for Latin American currencies

fell 0.8% and was on track for its worst monthly performance in

eight months, while regional stocks shed 1.4% by

1442 GMT.

Weighing on emerging market currencies, investors have

continually had to dial back expectations for the timing and

magnitude of U.S. rate cuts this year after hotter-than-expected

inflation reports.

"The pressures working against EM currencies are relentless,

as the Fed pulls back from its pivot late last year and the USD

proves resilient," said Paul Mackel, global head of FX research

at HSBC.

"It does not help that several EM central banks are cutting

their policy rates. Doubts have been lingering for some time

that this could play out too fast, calling their actions into

question. "

The dollar index rose 0.3%, with all eyes now on the

Fed's rate decision on Wednesday, when it is expected to keep

borrowing costs unchanged.

The Mexican peso slipped 0.3% against a firm dollar

after data showed the South American country's economy posted

better-than-expected first-quarter growth versus the previous

three months.

Brazil's real, Chile's peso and Colombia's

peso shed nearly 1% each against the strengthening

dollar.

Investors awaited an interest rate decision by the Colombian

central bank later in the day when it is expected to cut

borrowing costs by 50 basis points.

On the economic data front, Brazil's creation of formal jobs

in March significantly outpaced expectations, while Chile's

unemployment rate rose to 8.7% in the quarter through March as

expected.

Manufacturing production in Chile fell 2.1% in March on a

yearly basis, the country's INE statistics agency said, well

below the growth of 4.7% expected, while the Andean nation's

copper output was flat.

Bucking regional weakness, Argentina's MerVal jumped

3.2% to hit a record high after its lower house of Congress

approved a sweeping economic reform plan proposed by President

Javier Milei in an overall vote.

More broadly, emerging market stocks were set to end their

third month higher supported by recovery in China stocks, while

emerging market currencies were set for a

monthly decline.

Local currency emerging market bonds have lost investors

2.2% this month.

Key Latin American stock indexes and currencies at 1442 GMT:

rtrs Latest Daily % change

MSCI Emerging Markets 1046.72 -0.44

MSCI LatAm 2453.27 -1.42

Brazil Bovespa 126458.27 -0.7

Mexico IPC 57720.40 -0.19

Chile IPSA 6503.24 -0.72

Argentina MerVal 1349835.3 3.193

8

Colombia COLCAP 1379.21 -0.13

Currencies Latest Daily % change

Brazil real 5.1754 -1.18

Mexico peso 17.0553 -0.31

Chile peso 954.1 -1.32

Colombia peso 3895.53 -1.01

Peru sol 3.75 -0.85

Argentina peso (interbank) 876.5000 0.06

Argentina peso (parallel) 1020 2.45