(Updated at 1437 GMT)

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Colombia's June inflation on tap at 2300 GMT

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Chile's consumer prices down 0.1% in June

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Latam stocks up 0.1%, FX up 0.3%

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Bank of Israel keeps benchmark interest rate at 4.5%

By Johann M Cherian

July 8 (Reuters) - Most Latin American currencies kicked

off the week higher, with focus on inflation reports out of

local economies lined up through the week, while Chilean bond

yields ticked up as traders expected a hawkish stance on

interest rates later in the month.

MSCI's index tracking Latin American currencies

firmed 0.3% against the dollar on Monday on

expectations the U.S. Federal Reserve could lower interest rates

at least twice in 2024 on signs of benign inflation and a

softening labor market.

Meanwhile, yield on Chile's sovereign bond

rose between 1 to 7 basis points (bps)

after a central bank's poll showed traders expect the regulator

to hold its benchmark interest rate at 5.75% at its next

monetary policy meeting later this month. The peso was

largely flat.

Separately, data showed consumer prices fell 0.1% in June

from the previous month, compared with economists' expectations

of a 0.04% slip.

"Persistent tight financial conditions continue to restrain

overall inflation, and the anticipated impact of increased

electricity tariffs was less pronounced than expected," Andres

Abadia, chief Latam economist at Pantheon Macroeconomics said.

The peso has depreciated over 6% this year as the copper

producer's central bank kicked off its monetary policy easing

cycle earlier in the year. However, the currency found some

support as the regulator shifted to a more hawkish stance and

prices of the red metal got a lift.

Colombia's peso inched up 0.8% in thin trades ahead

of the release of an inflation report at 2300 GMT, with

economists expecting the Consumer Price Index to increase by

0.27% in June, less than the 0.43% rise seen the month before.

Copper producer Peru's sol strengthened 0.4%, while

Mexico's peso appreciated 0.7%.

Brazil's real underperformed peers, easing 0.6% from

a sharp rebound in the previous week after President Luiz Inacio

Lula da Silva seemed committed to fiscal stability.

Yield on sovereign bonds

also dropped 8-9 bps, ahead of June consumer prices data due

later in the week, which is expected to show a moderation in

price pressures.

On the equities front, MSCI's index tracking regional

bourses edged higher 0.1%, with heavyweight

Brazil's Bovespa limiting gains with its 0.3% decline.

Chile's main index was flat. The Andean country

saw copper exports increase in June, up 8% from a year earlier,

helping it achieve a trade surplus of nearly $2 billion during

the month.

Elsewhere in emerging markets, the shekel appreciated

0.3% after the Bank of Israel held interest rates steady.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1107.21 0.21

MSCI LatAm 2232.46 0.22

Brazil Bovespa 125974.95 -0.23

Mexico IPC 52471.57 0.26

Chile IPSA 6487.32 0.06

Argentina MerVal 1630973.34 0.119

Colombia COLCAP 1381.17 -0.17

Currencies Latest Daily %

change

Brazil real 5.4874 -0.47

Mexico peso 17.9960 0.54

Chile peso 937.2 -0.03

Colombia peso 4053.74 0.67

Peru sol 3.7928 -0.35

Argentina peso 916.5000 -0.05

(interbank)

Argentina peso 1405 1.07

(parallel)

(Reporting by Johann M Cherian in Bengaluru; Editing by Ros

Russell)