*

Mexico's inflation undershoots forecasts ahead of rate

decision

*

Uncertainties prevent indication of future tightening

steps-

Brazil c.bank

*

Copper, iron ore, oil prices jump on China's stimulus

measures

*

Latam FX up 1%, stocks up 2.5%

(Updated at 3:25 p.m. ET/ 1925 GMT)

By Ankika Biswas and Shashwat Chauhan

Sept 24 (Reuters) - Stocks and currencies of Latin

American countries jumped on Tuesday, boosted by sharp gains in

commodity prices on a strong demand outlook following China's

wide-ranging stimulus measures, with Brazil's real and Chile's

peso in the lead.

The MSCI index for Latam currencies climbed

1%, while the stocks index advanced 2.5%, on

track for its biggest one-day gain in more than a month.

The gains in Latam assets were in line with their broader

emerging market peers, with the MSCI EM stocks index

jumping 2.1% and hitting a two-year high.

With copper prices hitting 10-week highs on the back of top

metals consumer China's stimulus measures, the largest copper

producer Chile's peso strengthened 1.4% against the

dollar to hit a near one-month high.

Iron ore futures also logged their largest intraday gain in

over a year, likely aiding the 1.4% rise in Brazil's real

. Miner Vale, one of the world's largest iron

ore miners, jumped 5.3%, among the top gainers on Brazil's main

stock index.

Brazil's central bank said it gave no indication of its next

steps regarding the pace and magnitude of a tightening cycle due

to uncertainties, instead insisting on its "firm commitment" to

bringing inflation to the target.

The central bank's chief Roberto Campos Neto also noted

market concerns over the country's fiscal outlook have affected

long-term rates, but played them down as exaggerated.

An around 2% jump in oil prices also lifted the Mexican peso

and Colombian peso by 0.4% and 0.1%, respectively.

The Mexican benchmark stock index also gained over 2% to

hit a one-month high.

Data showed Mexico's annual inflation slowed more than

expected in the first half of September, paving the way for

another interest rate cut. The country's policy decision is due

on Thursday.

According to a survey released by Reuters, 19 of the 20

analysts who responded expect the central bank to lower its

benchmark interest rate by 25 basis points to 10.50%.

Striking a different tone, economists at Deutsche Bank

expect Banxico to cut by 50 bps due to "additional leeway

afforded by the Fed, the limited market reaction to the pipeline

of constitutional reforms being adopted, and the dovish bias of

the Board's majority."

Elsewhere, Hungary cut its base rate by another 25 basis

points to 6.5%, aided by a fall in inflation and last week's

larger-than-usual cut by the Federal Reserve.

HIGHLIGHTS:

** Russia to increase budget spending in 2025 to $446.24

bln, Russia's prime minister says

** Nigeria surprises with a rate hike to 27.25%

Key Latin American stock indexes and currencies:

MSCI Emerging Markets 1134.08 2.11

MSCI LatAm 2270.6 2.49

Brazil Bovespa 132388.22 1.39

Mexico IPC 53630.69 2.31

Chile IPSA 6449.56 1.18

Argentina Merval 1780048.7 -0.569

4

Colombia COLCAP 1331.3 0.69

Brazil real 5.4597 1.39

Mexico peso 19.3362 0.41

Chile peso 908.5 1.4

Colombia peso 4152.75 0.12

Peru sol 3.7497 0.36

Argentina peso (interbank) 965 0.051813472

Argentina peso (parallel) 1225 1.632653061