*

Brazil's real and Mexico's peso recover after Monday's

drop

*

Argentina's dollar bonds fall due to concerns over dollar

reserves

*

IMF sees steady global growth; lifts China, India

forecasts

*

Brazil's Lula questions need for spending cuts

(Updated at 3:52 p.m. ET/ 1952 GMT)

By Johann M Cherian and Shashwat Chauhan

July 16 (Reuters) - Most Latin American currencies

recouped some losses on Tuesday, as investors mulled former U.S.

President Donald Trump's possible victory in the upcoming

presidential race, while Argentine dollar bonds slid as concerns

rose about dollar reserves.

The currencies initially tumbled because Trump's policies on

trade, migration and security are seen as unfavorable to

developing economies.

Brazil's real appreciated 0.3%, while Mexico's peso

gained 0.5% against the dollar, after notching its

biggest single-day drop in nearly three weeks on Monday.

Brazilian President Luiz Inacio Lula da Silva said he is not

convinced his government needs to cut spending. He did not rule

out the possibility of Brazil not complying with its fiscal

target, according to extracts of an interview to be published

later in the day.

Peru's sol inched up 0.2%, while Colombia's peso

dipped 0.9% as crude prices slid more than 1%.

Most currencies in the region fell on Monday as investors

anticipated a second term in the White House for Trump, who

survived an assassination attempt over the weekend. The

Republican presidential candidate selected U.S. Senator J.D.

Vance to be his vice presidential running mate. Vance shares

Trump's hardline populist views.

Also supporting some bids were expectations of imminent U.S.

interest rate cuts following Federal Reserve Chair Jerome

Powell's comments that the trajectory of U.S. inflation was

heading to the U.S. central bank's 2% target.

Meanwhile, Argentina's dollar-denominated bonds resumed

their weekly fall with all restructured issues down over 1 cent

in price, as investor concern lingers over the government's

decision to sell dollars and its effect on reserves

accumulation.

Late last week, Argentina's government said the country's

central bank will start selling U.S. dollars in the parallel

foreign exchange markets to combat inflation and freeze the

country's money supply.

"While these measures are expected to narrow the gap between

the parallel and official rates, there are concerns that

dwindling international reserves could pose significant risks,"

said Geronimo Mansutti, an economist at Tellimer Research.

Among equities, Brazil's Bovespa stocks index

slipped 0.2%, as losses in technology and materials shares

weighed.

Elsewhere, the International Monetary Fund raised its

economic growth projections for the global economy in 2025 by

one-tenth of a percentage point to 3.3% and bumped up its

forecast for China to 4.5% from an earlier estimate of 4.1%.

The IMF also raised India's growth forecast for 2024-2025 to

7% from 6.8% due to improving private consumption, particularly

in rural parts of the South Asian nation.

Key Latin American stock indexes and currencies:

Latest Daily % change

MSCI Emerging Markets 1118.03 -0.2

MSCI LatAm 2323.18 0.35

Brazil Bovespa 129082.63 -0.18

Mexico IPC 54330.24 0.03

Chile IPSA 6566.38 0.25

Argentina MerVal 1529928.98 1.657

Colombia COLCAP 1374.10 -0.05

Currencies Latest Daily % change

Brazil real 5.4308 0.25

Mexico peso 17.6440 0.46

Chile peso 907.9 0.00

Colombia peso 3980.31 -0.92

Peru sol 3.6997 0.19

Argentina peso 922.5000 0.00

(interbank)

Argentina peso 1385 2.17

(parallel)