* LatAm stocks up 0.3%, FX off 0.4%

* Poll shows Brazil's Lula holds lead over Bolsonaro

* Argentina's economy to grow steadily next year - Reuters

poll

* IMF chief praises Argentina's economic reforms as 2027

debt hurdle looms

(Updates with afternoon trading levels)

By Utkarsh Hathi and Avinash P

July 27 (Reuters) - Most Latin American assets gained on

Monday as easing Middle East hostilities sent oil prices sharply

lower, boosting risk appetite across global markets.

Oil prices fell to a one-week low after the U.S. and Iran

paused strikes over the weekend, reviving hopes for a

de-escalation in their conflict and a resumption of oil shipping

through the Strait of Hormuz.

Last week's rally in crude above $100 a barrel had brought

the spotlight back on inflationary pressures that could force

central banks to maintain a hawkish stance.

Despite Monday's pullback in oil prices, that hawkish

pricing has largely held, according to Geoffrey Yu, senior EMEA

market strategist at BNY.

"Monetary policy remains in flux. One sharp fall in oil is

not enough to remove hikes from pricing after weeks of elevated

energy costs," he said.

In Latin America, attention will also turn to central bank

meetings in Colombia and Chile this week.

Colombia's central bank is expected to raise the benchmark

rate by 50 basis points, according to LSEG data as policymakers

weigh persistent inflation risks, including the potential impact

of El Nino-related weather shocks.

The Colombian peso rose 0.8%, hovering near its

strongest level in seven years, while its equities

were on track to register a fourth straight session of declines.

Chile's central bank is expected to keep rates unchanged.

The local currency advanced 1%, on track for its biggest

one-day jump in over a month, helped by an uptick in copper

prices, as Chile is the world's largest producer of the metal.

Equities also gained 0.3%.

Chile's government issued 3.1 billion euros ($3.53 billion)

in sovereign bonds across three maturities on Monday, financial

news service IFR reported.

The broader MSCI Latin American stocks index

gained 0.3%, while the currency equivalent

fell 0.4%.

In Brazil, political developments remain in the spotlight

after a poll showed that President Luiz Inacio Lula da Silva was

leading Senator Flavio Bolsonaro in a simulated second-round

runoff for October's presidential election.

Separately, Finance Minister Dario Durigan said that the

dispute with the U.S. on tariffs would likely be resolved after

the election, while accusing Bolsonaro of seeking foreign

backing.

Among currencies, the Brazilian real declined the

most, slipping 0.5% versus the dollar, while its equities

rose 0.6%.

The Argentine peso was muted, while equities

rose 0.2%. A Reuters poll of economists showed that

Argentina's economy will grow steadily into next year.

Echoing the optimism, International Monetary Fund Managing

Director Kristalina Georgieva expressed confidence in President

Javier Milei's economic reforms and the country's ability to

navigate a looming debt repayment crunch next year.

Mexico's benchmark stock index gained 1.1%, and its

currency firmed 0.2%.

The country's economy is likely to have recovered in the

second quarter, driven mainly by a rebound in industrial

activity, according to a Reuters poll.

Key Latin American stock indexes and currencies

Latin American market

prices from Reuters

Equities Latest Daily %

change

MSCI Emerging Markets 1643.31 0.94

MSCI LatAm 3039.23 0.34

Brazil Bovespa 175083.34 0.6

Mexico IPC 67111.85 1.1

Chile IPSA 10986.79 0.33

Argentina Merval 3288899.8 0.154

5

Colombia COLCAP 2273.28 -0.05

Currencies Latest Daily %

change

Brazil real 5.11 -0.52

Mexico peso 17.4474 0.17

Chile peso 939.25 0.97

Colombia peso 3191.5 0.79

Peru sol 3.3986 0.05

Argentina peso (interbank) 1496.5 0.03

Argentina peso (parallel) 1540 0.32