(Updated at 1438 GMT)

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Latam stocks off 0.9%, FX off 0.5%

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Colombia's May urban employment data on tap

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Argentina enters technical recession as job losses mount

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Morocco central bank cuts interest rate, sees inflation

falling

By Johann M Cherian

June 25 (Reuters) - Brazil's real led declines across

most Latin American economies on Tuesday, as investors assessed

minutes from the local central bank's latest policy meeting,

while also awaiting a key U.S. inflation figure later in the

week.

Brazil's real slipped 0.7% and was on track for its

biggest one day drop in over a week if losses hold. Minutes from

the latest monetary policy meeting showed the central bank

raised the neutral interest rate and indicated that it no longer

sees slack in the economy, stressing a more challenging

inflation outlook ahead.

"The window of opportunity to resume the easing cycle will

likely not open...until roughly mid-2025," Goldman Sachs

analysts said in a note.

"In the quest to bring inflation back to the target and

stabilize inflation expectations, fiscal policy will have to

play a central role; a role that it is yet to play."

The real is among top regional decliners, down over 10%

year-to-date as Copom commenced its easing cycle earlier in the

year.

However, concerns of underlying price pressures have sparked

fresh caution on further cuts, drawing criticism from President

Luiz Inacio Lula da Silva and piling on to worries about

political interference in monetary policy decision making by the

executive.

More broadly, MSCI's index tracking local currencies

slipped 0.5% as the greenback recovered ahead of

a key U.S. inflation report later in the week.

Mexico's peso slipped 0.3% after gaining for

three-straight sessions, while currencies of copper production

nations Chile and Peru climbed 0.3% each.

Colombia's peso inched up 0.1% ahead of the release

of the oil exporter's urban unemployment rate, which is expected

to stand at 10.4% in May, up from 10.3% in the month before.

MSCI's gauge for Latin American equities

added 0.9%, with heavy-weight Brazil's Bovespa dropping

0.2%.

Among single stocks, Frasle Mobility added 6%.

The Brazilian auto parts producer agreed to buy Mexican auto

spare parts distributor Dacomsa from Mexico's Grupo Kuo S.A.B de

C.V. for 2.1 billion reals ($389.5 million).

Mexico's main index shed 0.7%, while Colombia's

Colcap dropped 1.3%.

Argentina's MerVal index climbed 0.6%. Data showed

the country entered into a technical recession in the first

quarter of the year, and job losses mounted amid a tough

austerity drive by libertarian President Javier Milei who is

prioritising restoring fiscal order.

Elsewhere in emerging markets, Morocco's dirham was

flat after the local central bank cut its benchmark interest

rate by 25 basis points to 2.75%, saying the decision was

consistent with a drop in inflation.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1084.49 0.02

MSCI LatAm 2193.70 -1

Brazil Bovespa 122543.54 -0.08

Mexico IPC 52064.99 -0.85

Chile IPSA 6484.73 -0.1

Argentina MerVal 1571646.21 0.768

Colombia COLCAP 1368.90 -1.29

Currencies Latest Daily %

change

Brazil real 5.4359 -0.85

Mexico peso 18.0692 -0.73

Chile peso 942.5 0.31

Colombia peso 4086.35 -0.06

Peru sol 3.818 -0.55

Argentina peso 909.0000 0.00

(interbank)

Argentina peso 1335 -0.37

(parallel)