*

Trump raises tariffs on steel, aluminum imports

*

Brazil's inflation rate slows in January

*

Ecuador's bonds fall further

*

MSCI Latam FX up 0.2%, stocks up 0.6%

*

Egyptian, Jordanian bonds slide as Trump threatens to

withhold

aid

(Updates to mid-session trading)

By Purvi Agarwal and Johann M Cherian

Feb 11 (Reuters) - Latin American currencies and stocks

edged up on Tuesday as selling pressure sparked by U.S.

President Donald Trump's latest tariff announcements receded,

while Brazil's real firmed after data pointed to elevated price

pressures in the local economy.

Trump raised tariffs on steel and aluminum imports to a flat 25%

and eliminated country exceptions, quota deals and

product-specific exclusions, a move that drew condemnation from

Canada, the EU and Mexico.

MSCI's index tracking Latin American currencies

was up 0.2%, while a stocks gauge

climbed 0.6%.

Currencies in Brazil and Mexico, among the biggest

suppliers of steel to the United States, inched up 0.3% and 0.2%

respectively, with the news already priced in following reports

in the previous session.

Brazil's Bovespa rose 0.7%, although gains were

limited by a 0.7% fall in steel heavyweight Vale,

while Mexican stocks were weighed down by a 0.7% fall in

miner Grupo Mexico.

Trump's plans to unveil reciprocal tariffs in the next two days

also added some caution among investors in EM assets.

Aiding strength in Brazil's real, data showed domestic inflation

slowed in January, but the 12-month rate was still above the

upper end of the central bank's target range, keeping

expectations intact for another rate rise next month.

"For now, we think that March's hike will mark the end of

the tightening cycle, but the risks to our interest rate

forecast lie firmly to the upside," said Kimberley Sperrfechter,

emerging markets economist at Capital Economics.

The Chilean peso was flat but stocks in the Chilean

stock index were off 0.2%.

After five years of political upheaval, Chilean voters

appear to be returning to traditional moderate conservatism in

the run-up to a November presidential election, according to

polls and political analysts, and this has helped the stock

market in the world's largest copper producer to record highs.

Heavily influenced by oil exports, Colombia's peso

dipped 0.1%, while its stocks gained 0.3%.

Dollar bonds in Ecuador fell 3.4 cents,

further declining after Monday's sharp losses as the first round

of voting did not yield a winning presidential candidate,

forcing the election to a second vote.

"Other than keeping uncertainty high, the wait could impact

fundamentals too. It could leave fiscals looser or delay

potential funding until the election uncertainty has cleared,"

analysts at Morgan Stanley said.

They said Ecuador's bonds hold value and look cheap compared

to peers.

Analysts at BofA Global Research said that LatAm markets

outperformed other emerging markets in January, attracting

inflows from foreigners, despite broader EM funds seeing

outflows.

Elsewhere, investors monitored developments in the Middle East.

Some Egyptian bonds logged their biggest daily

drop in nearly two months after Trump said he could "conceivably

withhold aid" for the country and Jordan if they didn't agree to

take in Palestinians from Gaza as part of his plan for the U.S.

takeover of the enclave. Some Jordanian bonds also

fell.

Peru's sol was flat, while local equities

dropped 0.7%, with Credicorp down 0.8% after reporting

fourth-quarter net profit slightly below analysts' forecasts.

Key Latin American stock indexes and currencies at 1916 GMT:

Latin American market prices

from Reuters

Eq Latest Daily % change

ui

ti

es

MS 1104.54 -0.35

CI

Em

er

gi

ng

Ma

rk

et

s

MS 2076.79 0.60

CI

La

tA

m

Br 126433.92 0.69

az

il

Bo

ve

sp

a

Me 53376.14 0.85

xi

co

IP

C

Ch 7277.99 -0.23

il

e

IP

SA

Ar 2263228.73 -5.358

ge

nt

in

a

Me

rv

al

Co 1531.12 0.36

lo

mb

ia

CO

LC

AP

Cu Latest Daily % change

rr

en

ci

es

Br 5.7691 0.32

az

il

re

al

Me 20.5473 0.19

xi

co

pe

so

Ch 961.04 flat

il

e

pe

so

Co 4140.5 -0.13

lo

mb

ia

pe

so

Pe 3.711 -0.03

ru

so

l

Ar 1055.5 0.07

ge

nt

in

a

pe

so

(i

nt

er

ba

nk

)

Ar 1195 0.83

ge

nt

in

a

pe

so

(p

ar

al

le

l)