*

Mexico headline inflation speeds up slightly in March

*

El Salvador launches tender offer for external debt due

2025-2029

*

Argentina likely to cut interest rates 'soon' - source

*

Grupo Financiero Galicia to buy HSBC business for $550 mln

*

Latam stocks up 0.6%, FX adds 0.3%.

(Updated at 3:45 p.m. ET/1945 GMT)

By Bansari Mayur Kamdar

April 9 (Reuters) - The Mexican peso slipped from

nine-year highs on Tuesday after data showed headline inflation

in the region's second-largest economy rose in March, although

less than expected, while broader gauges of regional stocks and

currencies both rose.

The peso fell 0.6% to 16.4149 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, inflation excluding volatile food and energy

prices continued to moderate, standing at 4.55% in March from

4.64% in February.

"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."

Latin American stocks advanced 0.6%, with

Argentina's Merval climbing 1% and extending gains for

the third straight session.

Mexican stocks fell 0.8%, while Brazil's Bovespa

gained 0.7%.

The MSCI index for Latin American currencies

added 0.3%, trading at levels last seen in 2011.

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

0.3% and Brazil's real rose 0.4%.

Oil producer Colombia's peso fell 0.2%, as crude

prices slipped with negotiations continuing between Israel and

Hamas on a ceasefire in Gaza.

Shares of Grupo Financiero Galicia jumped 2.4%

after the company bought the business of the local subsidiary of

HSBC for $550 million.

Data showed Argentina's industrial output fell 9.9% in

February on a yearly basis.

In addition, Argentina's central bank is set to lower the

country's benchmark interest rate from its current level of 80%

soon, a source at the bank told Reuters.

El Salvador launched a tender offer for its external debt

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

in a post on X.

Domestic shocks in emerging economies in the G20 are

increasingly affecting 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

** Russian stocks rise to highest since before Russia

invaded Ukraine

Key Latin American stock indexes and currencies at 1945 GMT:

Latest Daily %

change

MSCI Emerging Markets 1056.19 0.67

MSCI LatAm 2578.97 0.59

Brazil Bovespa 129791.88 0.73

Mexico IPC 57497.59 -0.85

Chile IPSA 6670.35 1.02

Argentina MerVal 1243854.55 1.156

Colombia COLCAP 1408.74 1.58

Currencies Latest Daily %

change

Brazil real 5.0079 0.43

Mexico peso 16.4149 -0.62

Chile peso 940.9 0.33

Colombia peso 3768.62 -0.17

Peru sol 3.6797 -0.08

Argentina peso 864.5000 0.00

(interbank)

Argentina peso 980 0.51

(parallel)