*

Colombia cuts interest rates as expected

*

Mexico economy grows 0.2% in Q1 from previous quarter

*

Brazil's job creation outpaces expectations in March

*

Argentina lower house approves Milei reform bill

*

Latam FX down 1.1%, stocks shed 2.1%

(Updated at 1905 GMT)

By Bansari Mayur Kamdar and Johann M Cherian

April 30 (Reuters) - Latin American stocks and

currencies fell on Tuesday, headed for monthly losses, as U.S.

interest rate uncertainties and geopolitical tensions weighed,

while Colombia's peso extended declines after a local central

bank policy decision.

The MSCI index for Latin American currencies

fell 1.1% and was on track for its biggest monthly drop in 19

months. Regional stocks shed 2.1% by 1905 GMT,

on course for its worst month since January.

Investors have dialed back expectations for the timing and

magnitude of U.S. rate cuts this year after hotter-than-expected

inflation reports.

"A spike in global volatility and a hawkish Fed have weighed

on LatAm FX, particularly in crowded high-carry currencies,"

BofA Global Research analysts wrote.

"With all central banks already cutting rates in the

region, the appeal of carry as an investment thesis declines

under high global volatility."

The dollar index strengthened 0.5%, with all eyes on

the Fed's rate decision on Wednesday, when it is expected to

keep borrowing costs unchanged.

The Mexican peso slipped 0.6% against a firm dollar

after data showed the oil producing country's economy posted

better-than-expected first-quarter growth versus the previous

three months.

Brazil's real fell 1.3% after data showed creation of

formal jobs in March significantly outpaced expectations, while

Chile's peso lost 1.9% following news that unemployment

in the copper producing nation rose to 8.7% in the quarter

through March as expected.

Manufacturing production in Chile fell 2.1% in March on a

yearly basis, the country's INE statistics agency said, well

below the 4.7% growth expected, while the Andean nation's copper

output was flat.

Colombia's peso slid 1.8% after the domestic

central bank

trimmed the benchmark interest rate

by 50 basis points to 11.75%, as expected, as policymakers

looked to boost the economy while containing inflation.

Bucking regional weakness, Argentina's MerVal index

jumped 2.1% to a record high after the country's lower house of

Congress approved President Javier Milei's sweeping reform bill

ahead of a final Senate vote and backing articles related to

privatizing state bodies and labour reform.

More broadly, emerging market stocks were set to end their

third month higher supported by recovery in China stocks, while

emerging market currencies were set for a

monthly decline.

Local currency emerging market bonds have lost investors

2.2% this month.

Key Latin American stock indexes and currencies at 1910 GMT:

Latest Daily %

change

MSCI Emerging Markets 1045.23 -0.58

MSCI LatAm 2433.99 -2.2

Brazil Bovespa 126020.54 -1.05

Mexico IPC 56963.24 -1.5

Chile IPSA 6537.21 -0.2

Argentina MerVal 1337895.13 2.28

Colombia COLCAP 1369.85 -0.81

Currencies Latest Daily %

change

Brazil real 5.1864 -1.39

Mexico peso 17.1067 -0.61

Chile peso 959 -1.82

Colombia peso 3927.5 -1.81

Peru sol 3.765 -1.24

Argentina peso 876.5000 0.06

(interbank)

Argentina peso 1020 2.45

(parallel)