*

LatAm stocks down 0.5%, FX down 0.4%

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Consumer prices in Brazil rise 0.48% in September

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Mexico's annual inflation rises in September, within the

target

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Peru's rate decision at 19:00 ET

(Updates with analyst comment, afternoon prices)

By Pranav Kashyap and Nikhil Sharma

Oct 9 (Reuters) - The Argentine peso swung to gains on

Thursday, while international dollar bonds rallied in the first

signs of U.S. help after a recent pledge of support.

The local peso staged a sharp rebound, rising

0.8% after an earlier 2.6% slide, as U.S. Treasury Secretary

Scott Bessent revealed Washington had directly bought pesos to

back President Javier Milei's sweeping reform agenda - and

finalized a landmark $20 billion currency swap deal with

Argentina's central bank.

Argentine stocks surged 5.3%, but still and

hasn't recovered from their election-driven losses and is

trading nearly 33% below its all-time high.

Argentina's 2035 bond rose 5 cents to

trade at 57.75 cents on the dollar.

This sets the stage for a high-stakes meeting between Milei

and U.S. President Donald Trump on October 14.

"If they hadn't come through with a promise they made...

we would be talking about a complete collapse of Argentina,"

said Eduardo Ordonez Bueso, an emerging markets debt portfolio

manager at BankInvest.

"When they first announced (the) markets rallied

initially. But since then people were hungry for the details.

We're just waiting for all the little, dotting of the I's and

crossing of the T's to get all the final details for people to

feel comfortable and calm and stop challenging the exchange

rates."

Meanwhile, Israeli markets cheered the Gaza ceasefire deal

that could ease geopolitical tensions in the Middle East and

enable the release of Israeli hostages.

Longer-dated maturities saw the biggest gains, with bonds

maturing 2043 and after rallying more than 1 cent, Tradeweb data

showed. Israel's 2054 bond enjoyed the biggest gains, up 1.6

cents to be bid at 96.60 cents, its highest level in a year.

Tel Aviv stocks closed 2.9% higher at a

record-high.

Back in Latin America, Brazil's real fell 0.6%

after annual inflation rose less than expected to 5.17% in

September. It still remained slightly outside the central bank's

tolerance band.

Finance Minister Fernando Haddad said that the government

will take time to evaluate budget-boosting alternatives, a day

after the lower house removed an investment-tax overhaul

proposal from a vote.

Emerging-market assets wobbled this week, caught in a

crossfire of geopolitical flare-ups and Federal Reserve signals,

all unfolding against the shadow of a U.S. government shutdown.

Latin American stocks are on track for a

1% weekly slide, while regional currencies

barely budged, leaving investors grasping for direction amid a

swirl of local inflation data.

Against this backdrop, safe havens caught a bid - gold

and silver vaulted to fresh highs as risk appetite waned.

Mexico's benchmark equity index slipped 0.1% while

the peso slipped. Inflation accelerated in September,

though the pace came in just shy of forecasts - still

comfortably within the central bank's target range. Policy

signals leaned dovish. Minutes from Banxico's latest meeting

flagged a sluggish economy and a softening Fed stance, hinting

at more rate cuts ahead.

Peruvian stocks fell 1.5%, off record

levels, while local currency sol flattened ahead of the

central bank rate decision, likely to pause rates at 4.25%.

Colombia peso was flat as investors continued

digested the country's its largest domestic public debt swap in

history, for 43.4 trillion pesos ($11.18 billion).

Key Latin American stock indexes and currencies:

MSCI Emerging Markets 1371.8 -0.02

MSCI LatAm 2469.96 -0.54

Brazil Bovespa 141700.61 -0.31

Mexico IPC 60830.08 -0.1

Argentina Merval 1916651.4 5.342

3

Chile IPSA 8818.7 -1

Colombia COLCAP 1885.49 0.55

Brazil real 5.3758 -0.62

Mexico peso 18.3901 -0.33

Chile peso 950.74 0

Colombia peso 3883.78 0.04

Peru sol 3.4278 0.41

Argentina peso (interbank) 1418 0.85

Argentina peso (parallel) 1455 1.37