*

Brazil's central government deficit down in August

*

Ghana says bondholders have signed off on $13 bln debt

overhaul

*

Latam FX down 0.4%, stocks down 1.4%

(Updated at 3:30 p.m. ET/ 1930 GMT)

By Ankika Biswas

Oct 3 (Reuters) -

Most Latin American currencies weakened against a stronger

dollar on Thursday as investors pondered the trajectory of U.S.

interest-rate cuts while avoiding risk during the Middle East

conflict.

The MSCI index for Latam currencies slipped

0.4%, hitting a more than one-week intraday low.

On top of safe-haven demand, the dollar also

strengthened on expectations that the Federal Reserve will not

rush to cut U.S. interest rates, further steering investors away

from riskier assets.

Israel's military told residents of more than 20 towns in

south Lebanon to evacuate their homes immediately as it pressed

on with its cross-border incursion and struck Hezbollah targets

in a suburb of Beirut.

Ongoing geopolitical tensions soured investors' sentiment

just as emerging markets were riding high on a series of Chinese

stimulus measures and the Fed's recent 50-basis-point rate cut,

which had boosted Latam stocks and currencies.

"While China is trying to reshuffle market expectations,

data is likely to get worse before it gets better. Stimulus is a

second order effect but should favor CLP (Colombia) and BRL

(Brazil) over MXN (Mexico) in Latam in the months ahead,"

strategists at TD Securities noted.

Brazil's real weakened 0.6% against the dollar to a

more than one-week low.

Data showed Brazil's central government deficit in August in

line with expectations, marking a nearly 20% drop from the

year-ago shortfall, as revenue rose.

A more than 1% fall in copper prices weighed on top

producers, with Chile's peso down almost 1%.

Mexico's peso reversed course to rise 0.2%.

Analysts awaited the minutes from Colombia's central bank

policy meeting in September, in which it cut interest rates by

50 basis points.

The MSCI stocks index fell 1.4%, hitting a

three-week low earlier in the session, led by Brazilian shares

.

Elsewhere, Ghana's investors signed off on its proposal to

restructure $13 billion worth of international bonds, paving the

way for the country to emerge from a painful 2022 debt default.

HIGHLIGHTS:

** Brazil's Treasury Secretary defends rating upgrade as

technically sound

** South Africa introducing visa reforms to boost economy,

says minister

** Czech watchdog says 2025 budget draft overestimates

income, omits some expenditure

** Polish central bank head hopes rate cuts can start after

March projection

** Egypt's GDP growth slows to 2.4% for 2023/24 year-

planning ministry

Key Latin American stock indexes and currencies:

MSCI Emerging Markets 1170.91 -1.44

MSCI LatAm 2221 -1.41

Brazil Bovespa 131692.59 -1.36

Mexico IPC 51700.22 -0.96

Chile IPSA 6389.22 -0.04

Argentina Merval 1741436.9 1.532

9

Colombia COLCAP 1297.18 -0.32

Brazil real 5.4719 -0.57

Mexico peso 19.3576 0.22

Chile peso 919.7 -0.95

Colombia peso 4182.5 0

Peru sol 3.7198 0

Argentina peso (interbank) 971.5 -0.10

Argentina peso (parallel) 1185 2.53