*

US economic growth slows in first quarter; inflation

surges

*

Mexico stocks rise after Grupo Mexico, Cemex, Walmex

earnings

*

Ecuador's bonds rise; country reaches four-year, $4 bln

staff-level agreement with IMF

*

Petrobras shareholders approve dividend payout

*

Cement maker Cemex's Q1 profit climbs despite dip in

volumes

*

Latam FX off 0.2%, stocks up 0.2%

(Updated at 3:45pm ET/1945 GMT)

By Bansari Mayur Kamdar and Lisa Pauline Mattackal

April 25 (Reuters) - Latin American currencies fell on

Thursday, pressured by higher U.S. Treasury yields after

hotter-than-expected U.S. inflation data, though Mexican stocks

were on track for their highest close in two weeks after strong

earnings reports from heavyweight companies.

The MSCI index for Latin American currencies

slid 0.2%.

Benchmark U.S. 10-year Treasury note yields touched their

highest since November after U.S. core inflation data rose by

3.7%, above expectations for a 3.4% increase, further denting

chances for forthcoming interest rate cuts from the Federal

Reserve.

"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.

Meanwhile, Mexican stocks rose 1.1%, on track for its

highest close since April 9 as shares of companies including

Walmex and Grupo Mexico rose after reporting quarterly results.

Latin American currencies have been hit in recent weeks as

the difference between riskier emerging market assets and

Treasury yields has narrowed, as many central banks in the

region still hope to cut interest rates to stimulate economic

growth in contrast to the Fed.

"LATAM odds of exercising loose monetary policy and stay

stimulative are basically cemented," Perez said.

Mexico's peso Brazil's real Colombia's peso

and Peru's sol shed between 0.3% and 0.9% against the

greenback.

Bucking regional weakness, top copper producer Chile's peso

edged 0.2% higher, 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.

Copper prices also boosted mining and transport conglomerate

Grupo Mexico which rose 2.6% despite reporting a

16% drop in first-quarter net profit.

Cement-maker Cemex rose 2.4% after reporting a

rise in first-quarter net profit, while Walmart de Mexico

jumped over 2% after posting above-forecast net

profit.

Ecuadorian authorities reached a staff-level agreement with

the International Monetary Fund to underpin a four-year, $4

billion extended fund facility.

Ecuador bonds rose, with spreads to comparable U.S. debt

narrowing by 40 basis points to 1,119 basis points, on track to

end the day at the tightest since February 2023.

A basket of Latin American stocks rose 0.2%.

Brazil's Vale weakened 2.4% after reporting lower

earnings from the year-ago period.

Meanwhile, shares of oil giant Petrobras jumped

2.4% after shareholders approved payout of 50% of previously

withheld dividends.

Turkey's lira was mostly flat after the

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

50%, as expected.

Key Latin American stock indexes and currencies at 1945 GMT:

Latest Daily %

change

MSCI Emerging Markets 1029.30 -0.52

MSCI LatAm 2424.72 0.16

Brazil Bovespa 124633.53 -0.09

Mexico IPC 57091.79 1.11

Chile IPSA 6337.91 -0.4

Argentina MerVal 1234931.10 2.683

Colombia COLCAP 1349.56 0.46

Currencies Latest Daily %

change

Brazil real 5.1636 -0.33

Mexico peso 17.2020 -0.85

Chile peso 948.2 0.15

Colombia peso 3963.81 -0.63

Peru sol 3.742 -0.68

Argentina peso 873.5000 0.00

(interbank)

Argentina peso 1035 0.00

(parallel)