*

US economic growth slows in first quarter; inflation

surges

*

Lower iron, nickel and copper prices weigh on Vale's

earnings

*

Cement maker Cemex's Q1 profit climbs despite dip in

volumes

*

Latam FX off 0.4%, stocks down 0.5%

By Bansari Mayur Kamdar

April 25 (Reuters) - The Mexican peso led losses among

Latin American currencies on Thursday, after

hotter-than-expected U.S. inflation data reignited concerns that

the Federal Reserve would delay cutting interest rates.

The MSCI index for Latin American currencies

slid 0.4% by 1500 GMT.

The peso weakened 1.1% against the dollar on the news

of sticky U.S. inflation.

"What seems to be now causing some havoc across markets is

the thought that we may witness a cycle of 'stagflation' in the

U.S., a time when the economy stagnates while prices remain

elevated without reprieve," said Juan Perez, director of trading

at Monex.

"LATAM odds of exercising loose monetary policy and stay

stimulative are basically cemented."

Other Latin American currencies such as the Brazilian real

and Colombia's peso shed 0.5% and 0.7%,

respectively, against the greenback.

Bucking regional weakness, top copper producer Chile's peso

rose 0.2%, tracking firm prices of the metal as funds

chased the market higher after a takeover bid by BHP for Anglo

American, which analysts said was focused on copper.

Stocks in Latin America fell 0.5%.

Mexican stocks eased 0.1% as Arca Continental

shares fell 2.1% after the bottler's first-quarter profit was

eroded by the strong Mexican peso.

Cement-maker Cemex shed 1.2% after reporting

lower operating earnings, even though first-quarter net profit

rose 13% on lower taxes and less exposure to financial

derivatives.

Brazil's Bovespa index fell 0.4%, as heavyweight

miner Vale weakened after it said lower prices for

iron ore, nickel and copper in the first quarter dragged down

earnings from the year-ago period.

Argentina's MerVal rose 1.2% as stocks rebounded

after two days of sharp losses.

Turkey's lira was mostly flat after the

country's central bank kept its main interest rate steady at

50%, as expected.

Sri Lanka's central bank said it is paramount that the

country stick to its Extended Fund Facility agreement with the

International Monetary Fund and complete its debt restructuring

process, it said in a report issued on Thursday.

Key Latin American stock indexes and currencies at 1500 GMT:

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1027.76 -0.67

MSCI LatAm 2407.33 -0.56

Brazil Bovespa 124188.19 -0.44

Mexico IPC 56423.66 -0.07

Chile IPSA 6321.93 -0.65

Argentina MerVal 1216873.29 1.181

Colombia COLCAP 1345.39 0.15

Currencies Latest Daily %

change

Brazil real 5.1701 -0.45

Mexico peso 17.2625 -1.20

Chile peso 949.8 -0.02

Colombia peso 3969.6 -0.77

Peru sol 3.7413 -0.66

Argentina peso 873.5000 0.00

(interbank)

Argentina peso 1020 1.47

(parallel)