(Updated at 4pm ET/2000 GMT)

By Sruthi Shankar

April 1 (Reuters) - Chilean stocks rose to fresh

intraday highs on Monday, aided by strong domestic and Chinese

economic data, while the Turkish lira strengthened following the

ruling party's defeat in local elections.

The leading index of Chile's stock market IPSA

climbed as much as 0.9% to an all-time intraday high of 6,705.61

before easing. The index led gains among Latin American equity

markets.

Data showed economic activity in Chile, the world's largest

copper producer, rose 4.5% in February, the biggest year-on-year

increase in almost two years, following a major beat in January.

Further helping the mood, copper prices rose after strong

industrial data from top metals consumer China raised the

outlook for copper.

However, the Chilean peso weakened ahead of Tuesday's

central bank meeting where policymakers are expected to deliver

a 75-basis-point rate cut to 6.50%.

Overall, developing world currencies struggled as the dollar

rose on news that U.S. manufacturing grew in March for the first

time since September 2022, tempering traders bets on a Federal

Reserve rate cut in June.

The Brazilian real eased 0.9%, while the Mexican peso

dipped 0.5%.

An exception was the Turkish lira, which firmed about

1% a day after Turks dealt President Tayyip Erdogan and his

party their biggest electoral blow in a nationwide local vote.

The lira firmed to below 32 to the dollar after dipping to a

record low of 33 in thin overnight trade. Many European markets

were closed on Monday for the Easter holiday.

"Looking ahead beyond the elections and the rate hike, we

argue that the prospects for reviving high quality capital

inflows and attaining a lasting macroeconomic stability will be

determined by policymakers' ability to put forward a credible

narrative," noted Citi economist Ilker Domac.

"We don't foresee major reversals from the normalization

path in the near-term."

Analysts said Turkey's near-70% inflation rate, slowing

economic growth and an aggressive monetary tightening campaign

that has jacked up borrowing costs had hurt the AKP result.

Turkey's BIST 100 closed 0.2% higher, with banks

providing a big boost.

Peru's annualized inflation slowed to 3.05% in March, data

showed. Peru's sol was mostly unchanged on the day.

HIGHLIGHTS:

** Bank of Mexico's Espinosa flags further challenges to

inflation -Reforma

** China's factory activity expands at fastest clip in 13

months

** Argentina's markets closed for local holiday after Easter

Key Latin American stock indexes and currencies at 2000 GMT:

Latest Daily %

change

MSCI Emerging Markets 1041.13 -0.2

MSCI LatAm 2509.34 -1

Brazil Bovespa 126991.18 -0.87

Mexico IPC 57526.69 0.27

Chile IPSA 6637.91 0.61

Argentina MerVal 1213484.60 -0.096

Colombia COLCAP 1344.55 0.87

Currencies Latest Daily %

change

Brazil real 5.0588 -0.86

Mexico peso 16.6260 -0.48

Chile peso 984.2 -0.42

Colombia peso 3860.83 -0.10

Peru sol 3.7137 0.05

Argentina peso 857.5000 -0.06

(interbank)

Argentina peso 990 2.53

(parallel)