*

Pullback contrasts with optimism in Asia and parts of

Europe

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Argentine peso weak despite US Treasury's support

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Peru's equities set for biggest intraday pct drop since

April

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LatAm FX down 0.2%, stocks off 1%

(Updates with afternoon trading)

By Niket Nishant and Purvi Agarwal

Oct 21 (Reuters) - Latin American stocks dipped on

Tuesday, taking a breather after four straight sessions of gains

and currencies also weakened, while Colombian and Argentine

assets remained in focus amid political developments.

MSCI's index tracking Latin American equities

fell 1%, easing from a two-week high hit on

Monday. A gauge of regional currencies also

slipped 0.2%, as the dollar index strengthened.

The pullback stands in contrast to gains elsewhere in

emerging markets, as stocks in Asia and parts of Europe

advanced, highlighting uneven investor sentiment across regions.

Most export-heavy Latin American economies were affected by

moves in commodity prices. Sharp declines in gold, silver and

copper prices weighed on miners across the region. Stocks in

Chile, the world's largest copper exporter, fell 0.5%.

Peru's Lima Stock Exchange dropped

3.1%, set for its biggest intraday decline since April, as gold

and copper are among its top exports.

Meanwhile, Colombia and Argentina remained on investors'

radar. Colombia's foreign ministry said a meeting on Monday

between President Gustavo Petro, U.S. charge d'affaires John

McNamara and Colombia's recalled ambassador to the U.S. Daniel

Garcia-Pena was a first step toward healing a rift over drugs

and tariffs.

The Colombian peso gave up most of its earlier gains

to trade flat against the dollar, after recording its steepest

one-day fall in over two months on Monday. Equities

dipped 0.3%.

"The episode (feud with the U.S.) has reinforced perceptions

of geopolitical risk at a delicate moment for Colombia's

economy- one heavily dependent on trade and remittances from the

U.S.," said Felipe Barragan, research strategist at Pepperstone.

"Any deterioration in bilateral relations could disrupt

key export channels or external funding flows at a time when

domestic fundamentals already look stretched."

Argentina's stocks fell for the second straight day

as the country heads into Sunday's crucial midterm elections.

They were last down 1.2%.

A strong show of support from the U.S. Treasury, with its

$20 billion exchange-rate stabilization agreement with

Argentina's central bank, has helped sentiment in the country's

assets but the local peso continued to weaken against

the dollar.

It closed at a record low against the greenback on

Monday and was last down 1%, in its sixth consecutive session of

declines.

"Latin American companies are dealing with both the macro

and the micro risk. There are things that they cannot control

and are not well-equipped to sort out all the challenges," said

David Garcia, co-founder at investment management firm

Borderless.

Brazil's heavyweight Ibovespa index fell 0.4%, while

the real was down 0.2%.

The country's environmental agency Ibama greenlit state-run

oil company Petrobras to conduct exploratory research

by drilling wells in the Foz do Amazonas region, near the mouth

of the Amazon river.

Separately, Brazil's finance minister said the government

plans to send two separate bills with fiscal measures on Tuesday

to the Congress, reviving provisions that were previously

included in an executive order that expired after lawmakers

failed to vote on it.

Mexican stocks fell 1.5%, on track to end the third

consecutive session in the red. Mining company Industrias

Peñoles led the decline.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

MSCI Emerging Markets 1382.89 -0.03

MSCI LatAm 2482.57 -1.04

Brazil Bovespa 144006.82 -0.35

Mexico IPC 60747.95 -1.5

Chile IPSA 9114.9 -0.49

Argentina Merval 2002979.2 1.24

Colombia COLCAP 1891.45 -0.31

Brazil real 5.3867 -0.23

Mexico peso 18.4286 -0.26

Chile peso 953.65 -0.31

Colombia peso 3889.5 -0.01

Peru sol 3.3882 -0.5

Argentina peso (interbank) 1490 -1.02

Argentina peso (parallel) 1525 -2.69