*

Chile's peso leaps 2%

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Copper, oil prices rise

*

Brazil industrial production falls in March

*

Colombia to reopen global bonds coming due in

2035-ministry

(Updated at 4pm ET/2000 GMT)

By Bansari Mayur Kamdar and Lisa Pauline Mattackal

April 3 (Reuters) - Chile's peso led gains among

regional peers on Wednesday, as prices of its largest export,

copper, rallied and investors priced in less aggressive rate

easing by the Central Bank of Chile.

The peso gained 2% to 954.5 per dollar, its

strongest day in nearly one month. MSCI's basket of Latin

American currencies was up 0.4%.

The Central Bank of Chile cut its key interest rate by 75

basis points overnight to bring it to 6.5%, in a unanimous

decision, as the market expected.

"The pace of easing slowed this month - the Bank cut the

policy rate by 100 basis points in January - as inflation

pressures are increasing at the margin," said Andres Abadia,

chief Latam economist at Pantheon Macroeconomics.

The central bank on Wednesday said the Andean nation's gross

domestic product was expected to grow 2% to 3% in 2024 when

compared to the year before, up from a previous forecast of

1.25% to 2.25% growth.

Meanwhile, copper prices jumped on the back of improving

manufacturing activity in China, also lifting No. 2 copper

producer Peru's sol 0.46% against the dollar.

Chile's finance minister said he expected Chile's peso,

which has fallen over 8% versus the dollar in 2024, to

strengthen once the U.S. Federal Reserve begins to cut interest

rates and the Chilean-U.S. interest rate differential shrinks.

Traders broadly expect the first Fed cuts to occur in June,

but Federal Reserve Chairman Jerome Powell reiterated on

Wednesday the central bank needed "greater confidence" that

inflation is retreating.

The currencies of oil exporters Mexico and Colombia

climbed 0.1% and 0.2%, respectively, as oil prices

settled at their highest since late October.

In Brazil, data showed industrial production dipped slightly

in February from the previous month, a worse-than-expected

performance that confirms a negative start to the year for the

sector.

The real strengthened 0.37%.

Brazil's central bank chief, meanwhile, said that

policymakers have a significant concern with long-term inflation

expectations that have not converged to the official target.

Financial markets in Argentina resumed trading after six

days of inactivity due to holidays and weekends, with the Merval

index falling 0.3%.

MSCI's gauge of Latin American stocks

reversed early losses to trade 0.2% higher.

Colombia's finance ministry said it will reopen global bonds

coming due in November 2035, after issuing a first tranche of

the paper last year.

HIGHLIGHTS:

** Banks in Mexico and Paraguay set to be regional leaders

in 2024 - Moody's

Key Latin American stock indexes and currencies at 2000 GMT:

Latest Daily %

change

MSCI Emerging Markets 1044.44 -0.52

MSCI LatAm 2528.20 0.23

Brazil Bovespa 127300.31 -0.19

Mexico IPC 57467.55 -0.2

Chile IPSA 6616.76 -0.26

Argentina MerVal 1210345.54 -0.259

Colombia COLCAP 1383.91 0.82

Currencies Latest Daily %

change

Brazil real 5.0393 0.37

Mexico peso 16.5352 0.09

Chile peso 954.5 2.06

Colombia peso 3807.5 0.19

Peru sol 3.6763 0.46

Argentina peso 861.0000 -0.35

(interbank)

Argentina peso 985 2.54

(parallel)