*

Mexico headline inflation speeds up slightly in March

*

El Salvador launches tender offer for external debt due

2025-2029

*

Grupo Financiero Galicia to buy HSBC business for $550 mln

*

Latam stocks up 1.0%, FX adds 0.5%.

By Bansari Mayur Kamdar

April 9 (Reuters) - The Mexican peso lagged Latin

American peers on Tuesday after data showed headline inflation

in the region's second-largest economy rose up slightly in

March, although less than expected.

The peso inched 0.2% down against the dollar,

retreating from its highest level in nine years.

Mexico's headline inflation reached 4.42% in March, a modest

increase from the 4.40% seen in February, although below the

4.50% expected by economists polled by Reuters.

Meanwhile, core inflation, that excludes some volatile food

and energy prices, continued to moderate, standing at 4.55% in

March, a decrease from the previous month's 4.64%.

"The CPI data not showing stubborn inflation serves as fuel

for markets to believe that Banxico can afford to do another

interest rate cut sooner rather than later," said Juan Perez,

director of trading at Monex.

"Unlike all other currencies, MXN has performed in an

impressive way against the buck all of 2024 so there is some

profit-taking also finally taking place."

The MSCI index for Latin American currencies

added 0.5%.

Investors remained cautious globally ahead of U.S. inflation

data on Wednesday that could provide more clues on the Federal

Reserve's rate cut path, with the dollar softening

marginally.

Firm copper prices lifted the currency of top producer Chile

up 0.7%.

Brazil's real rose 0.4% against the greenback, ahead

of its domestic monthly inflation report later this week.

Oil producer Colombia's peso added 0.2% and was on

track to extend gains for a sixth straight session against the

dollar as crude prices rebounded on fading hopes that

negotiations between Israel and Hamas would produce a ceasefire

in Gaza.

Domestically, Colombian leftist rebel group the National

Liberation Army (ELN) has requested an extraordinary meeting

with the government, saying peace talks were in a "critical

state," sources from the government and the rebel group said.

Latin American stocks advanced 1%, with

Argentina's Merval climbing 2.8% and extending gains for

third straight session.

Shares of Grupo Financiero Galicia jumped 5.0%

after the company bought the business of the local subsidiary of

HSBC for about Grupo Financiero Galicia to buy the business for

$550 million.

Meanwhile, Argentine annual inflation is expected to hit

189.4% this year, a central bank poll of analysts showed on

Monday

El Salvador launched a tender offer for its external debt

due from 2025 to 2029, President-elect Nayib Bukele said on

Monday in a post on X.

Elsewhere in emerging markets, Russian stocks rose to their

highest since before Russia invaded Ukraine in February 2022,

boosted by market expectations that borrowing costs will be

eased later this year.

Domestic shocks in emerging economies in the G20 are

increasingly impacting growth in the rich world, according to a

report by the International Monetary Fund.

HIGHLIGHTS:

** IMF reaches staff-level deal with Ivory Coast

** Taiwan stocks hit record high on TSMC boost

** Mexico to cut at least 330,000 bpd of crude exports in

May, sources say

Key Latin American stock indexes and currencies at 1435 GMT:

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1056.72 0.72

MSCI LatAm 2589.31 1

Brazil Bovespa 129874.03 0.79

Mexico IPC 58057.83 0.12

Chile IPSA 6613.34 0.15

Argentina MerVal 1263281.25 2.736

Colombia COLCAP 1402.96 1.17

Currencies Latest Daily %

change

Brazil real 5.0054 0.48

Mexico peso 16.3500 -0.23

Chile peso 938.4 0.60

Colombia peso 3757.47 0.13

Peru sol 3.6801 -0.09

Argentina peso 864.5000 0.00

(interbank)

Argentina peso 970 1.55

(parallel)