* MSCI LatAm FX down 0.3%, stocks lose 0.2%

* Chile cuts 2026 growth forecast, raises inflation

estimates

* Mexico engaged in USMCA negotiations, outcome awaited

* Senegal bonds tumble after new prime minister appointed

(Updates with afternoon trading levels)

By Avinash P, Purvi Agarwal and Ragini Mathur

May 26 (Reuters) - Latin American assets were mixed on

Tuesday as investors weighed renewed U.S. strikes on Iran, which

dampened hopes for an imminent U.S.-Iran peace deal just days

after signs of progress toward an agreement.

Iran said Washington had violated a ceasefire after the U.S.

carried out what it described as defensive strikes in southern

Iran. U.S. Secretary of State Marco Rubio said negotiations to

halt the conflict could "take a few days."

The developments lifted the U.S. dollar as investors turned

more cautious, weighing on emerging-market currencies.

MSCI's index of Latin American currencies

fell 0.3%.

MOST REGIONAL CURRENCIES AND STOCKS EASE

Colombia's peso weakened 0.9% against the dollar,

while local stocks gained 4.1%, supported by a 5.7%

rise in shares of state-run oil company Ecopetrol

as Brent crude prices climbed about 3.4%.

Investors are also watching Colombia's presidential

election, with the first round scheduled for May 31. Leftist

candidate Iván Cepeda, who has pledged to continue President

Gustavo Petro's policies, is slightly ahead in opinion polls.

However, the final survey before the vote showed he would likely

lose a June runoff to right-wing rivals.

"A win by De la Espriella (a populist right-wing candidate)

would be good for the pro-market forces and benefit the COP as

traders begin to anticipate better growth and capital inflows,"

said a group of FX and rates strategists at Macquarie led by

Thierry Wizman.

More broadly, MSCI's gauge of Latin American stocks

slipped 0.2%.

Regional equities have rallied in recent sessions alongside

global markets as risk sentiment improved on signs of diplomatic

progress in the Middle East. Still, they continue to lag U.S.

and European stocks, which have largely recovered the losses

triggered by the conflict.

Mexico's peso depreciated 0.2%, while the country's

benchmark stock index rose 1.3%. Mexico is in talks with

the U.S. over the USMCA, the existing North American trade

agreement, and analysts expect the outcome to be the next major

catalyst for Mexican markets.

In Brazil, a Reuters poll showed local stocks are likely to

resume this year's gains in the coming months, although analysts

now see less upside than they did three months ago. On Tuesday,

Brazil's Bovespa index fell 1.2%.

Chilean stocks dropped 1%, tracking a slight

decline in copper prices. The index had posted its biggest

intraday jump since April 8 on Monday, buoyed by hopes that

peace in the Middle East was nearing.

Chile's government also cut its 2026 economic growth

forecast to 2.1% from 2.4% and raised its inflation

expectations.

Peruvian stocks rose 2.7%, while the sol

gained 0.3% to its strongest level in more than a month.

Elsewhere in emerging markets, Senegal's hard-currency

international bonds fell about 2 cents on the dollar after the

president appointed a new prime minister, days after removing

Ousmane Sonko, who was seen as the main opponent of a debt

restructuring.

Key Latin American stock indexes and currencies:

Stock indexes

Latest Daily %

change

MSCI Emerging Markets 1719.42 0.47

MSCI LatAm 3065.17 -0.15

Brazil Bovespa 175768.33 -1.15

Mexico IPC 69199.42 1.37

Chile IPSA 10718.32 -1.01

Argentina MerVal 2920007.05 2.59

Colombia COLCAP 2220.34 4.1

Currencies Latest Daily %

change

Brazil real 5.0299 -0.28

Mexico peso 17.2999 -0.16

Chile peso 892.3 0.24

Colombia peso 3667.5 -0.91

Peru sol 3.4045 0.28

Argentina peso 1,410.0 -0.50

(interbank)

Argentina peso 1,420.0 0.35

(parallel)