*

Geopolitical worries in Middle East hit EM assets

*

Brazil relaxes 2025 fiscal targets

*

Chile's Antofagasta expects higher 2024 copper prices

*

Latam currencies down 0.5%, stocks fall 1.3%

(Updated at 3:45 pm ET/1945 GMT)

By Bansari Mayur Kamdar and Lisa Pauline Mattackal

April 15 (Reuters) - Currencies and stocks in Latin

America fell steeply amid a cautious global mood on Monday, as

dwindling Federal Reserve rate cut hopes weighed and investors

assessed the impact of rising geopolitical tensions in the

Middle East after Iran's missile and drone attack on Israel.

The MSCI indexes for Latam currencies fell

0.5%, set for its lowest close since February. A basket of

regional stocks dropped 1.3%, on track for a

fourth consecutive session in the red.

The currency index ended Friday with its worst weekly

performance since October as the U.S. dollar soared on concerns

the Fed will keep rates higher for longer.

Investors were cautious after

Iran

launched a missile and drone attack against Israel over the

weekend in retaliation for a suspected attack on its embassy.

However, calls for restraint from Israel helped soothe some

tensions in the region.

"We continue to believe a broader regional conflict is not

imminent," analysts at Wells Fargo wrote, adding the escalation

in Iran had not changed their long term investment views.

"Sentiment and oil prices are the most likely channels

through which the global economy, monetary policy and financial

markets could be interrupted."

The currencies of Brazil, Colombia and Chile

each slipped about 1.3% versus the dollar, which

touched its highest in over five months.

Brazil's government set a

fisca

l target of zero primary deficit for 2025, Finance Minister

Fernando Haddad said, relaxing the previous target of a 2025

surplus of 0.5% of gross domestic product.

The real fell after the announcement, and stocks in Brazil

slipped 0.4%.

Elsewhere, shares of Brazil's BRF leapt over 10%

to their highest since 2022 after ratings upgrades from JPMorgan

and Goldman Sachs.

Bank of

Mexico

Deputy Governor Jonathan Heath said the country's inflation

in the country was showing signs of persistence and that

difficult terrain lay ahead for policymakers.

Mexico's peso slipped 0.6% against the dollar and stocks

lost 0.8%.

Elsewhere in emerging markets, Israel's shekel jumped

0.5% against the dollar in what market players said was a

"relief rally" as Israel had not hit back at Iran so far.

Peru's sol lost 0.8%, despite data showing the

economy

notched its best month of growth in nearly two years.

Ghana failed to strike a deal with two bondholder groups to

restructure $13 billion of international bonds.

HIGHLIGHTS

**

Amundi says Indian equities, ex-China EM to offer the

appealing returns

** Ashmore reports drop in AUM

**

U.S. extends license

protecting Citgo from creditors through mid-August

** US says will not renew easing of

Venezuela

oil sanctions unless progress made on elections

Key Latin American stock indexes and currencies at 1945 GMT:

Latest Daily %

change

MSCI Emerging Markets 1029.90 -1.13

MSCI LatAm 2431.28 -1.33

Brazil Bovespa 125351.83 -0.47

Mexico IPC 56132.36 -0.77

Chile IPSA 6485.76 -1.19

Argentina MerVal 1196300.74 -3.875

Colombia COLCAP 1378.94 -0.85

Currencies Latest Daily %

change

Brazil real 5.1868 -1.27

Mexico peso 16.7146 -0.57

Chile peso 978.9 -1.29

Colombia peso 3905.81 -1.32

Peru sol 3.7238 -0.83

Argentina peso 868.0000 -0.12

(interbank)

Argentina peso 995 1.01

(parallel)