*

Fibra Macquarie announces shareholder backing for

Terrafina

takeover

*

Colombia 12-month inflation rate at 7.18% in June

*

Chile central bank issues new regulations on securitized

bonds

*

Latam stocks up 1.2%, FX up 0.8%

(Updated at 03:04 p.m. ET/ 1904 GMT)

By Johann M Cherian

July 9 (Reuters) - Most Latin American currencies

advanced on Tuesday as investors digested comments from the U.S.

Federal Reserve Chair Jerome Powell, while signs of persistent

price pressures in Mexico and Colombia added to their respective

currencies' gains.

MSCI's index tracking Latin American currencies

climbed 0.8% against the dollar, as Powell in

his Congressional testimony said inflation had been improving in

recent months and that "more good data would strengthen" the

case for looser monetary policy.

Brazil's real advanced 1.1% and was among the

region's top performers, ahead of Wednesday's June inflation

data, with economists expecting the index to rise to 4.35%, from

3.93% in the month before.

Mexico's currency strengthened 0.5% to a two-week

high after data showed headline inflation accelerated more than

expected for the fourth-straight month in June on a boost from

food costs.

Reflecting on the report, Bank of Mexico Deputy Governor

Jonathan Heath said on social media platform X that domestic

inflation in June was "very worrying".

Still, Kimberley Sperrfechter, emerging markets economist at

Capital Economics, said: "While there's still a lot of

uncertainty around the next rate decision in August, we think

that the easing of core price pressures, alongside the weak run

of activity data and the rebound in the peso leave an August

rate cut in play."

Colombia's peso appreciated 0.8% to a nearly

one-month high after data showed inflation stood at 0.32% in

June, higher than expectations of 0.27% by economists polled by

Reuters.

Chile's central bank issued new regulations allowing banks

to acquire securitized bonds with underlying assets of credits

originated by the same institution, so-called retained

securitization. Local sovereign bonds were largely flat, while

the peso jumped 1.1%.

MSCI's index tracking regional bourses

climbed 1.2%. The index has lost over 14% year-to-date as

political uncertainty in the region's top economies, along with

central banks delaying monetary policy easing, weighed on risk

taking.

Brazilian stocks gained 0.4%, with Iguatemi

climbing 1%, after the company signed a contract

with Combrashop to take a 54% stake in Shopping Rio Sul.

Mexico's main stock index added 0.8%. Real estate

investment trust Fibra Macquarie announced it

received the backing of its shareholders for its takeover bid of

competitor Terrafina Real Estate. Shares of Fibra were up 0.2%.

In Argentina, President Javier Milei signed a long-delayed

pact with provincial governors. Local markets were closed for a

holiday.

Key Latin American stock indexes and currencies:

Latin American market prices from Reuters

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1111.64 0.39

MSCI LatAm 2277.39 1.22

Brazil Bovespa 127088.28 0.43

Mexico IPC 53352.02 0.84

Chile IPSA 6487.07 -0.52

Argentina MerVal 0.00 0

Colombia COLCAP 1373.34 -0.7

Currencies Latest Daily %

change

Brazil real 5.4145 1.14

Mexico peso 17.8971 0.55

Chile peso 929 1.14

Colombia peso 4010.69 0.84

Peru sol 3.7818 -0.15

Argentina peso (interbank) 917.0000 -0.11