*

Chile's peso at four month highs

*

Rising iron ore prices push Brazil's real higher

*

Latam FX up 0.1%, stocks down 0.1%

By Shashwat Chauhan

May 16 (Reuters) - Most Latin American currencies

slipped on Thursday, as a resurgent dollar ticked up following

last sessions' declines, though the Brazilian real bucked the

trend amid rising iron ore prices.

Brazil's real appreciated 0.2% against the dollar, as

iron ore prices, one of the country's top exports, gained on

news of authorities in top consumer China considering government

purchases of unsold homes.

Separately, data showed inflation in Brazil as measured by

the IGP-10 price index rose 1.08% in May, compared to a 0.33%

drop in April.

Mexico's peso dipped 0.1% against the dollar as the

greenback regained strength, though hovering near its highest

level in over a month.

The dollar index, which measures the greenback

against a basket of global peers recouped some losses to rise

0.3% after Wednesday's fall when data had showed U.S. consumer

prices increased less than expected in April, which boosted

hopes that the Federal Reserve could kickstart its policy easing

cycle as early as September.

"Wednesday's US CPI report was notable because it seemed to

mark an end to the stream of top-side surprises that began in

January," Macquarie strategists noted.

"The bad news, though, is that one month of at-consensus

core CPI may not be "enough" to start the Fed's countdown on a

rate cut."

Colombia's peso shed 0.2%, while Peru's sol

was last down 0.6%.

Chile's peso staved off steep losses to rise 0.3%,

touching its highest level in over four months, its fourth

successive day of gains.

As of 10:40 a.m. ET (1440 GMT), MSCI's index for Latin

American stocks shed 0.1%, while a gauge for

currencies edged 0.1% higher.

Heavyweight Brazil's Bovespa stock index was flat,

as gains in consumer staples and health care stocks were

countered by falling energy shares.

Equities in Mexico slipped 0.2%, while those in

Argentina fell 0.5% after logging sharp gains in the

last two sessions.

Argentina will post a budget surplus in April for the fourth

consecutive month under the new government, the country's

economy chief said late on Wednesday, touting the trend as a

reflection of stronger finances in the midst of an economic

slump.

HIGHLIGHTS:

** Swap old for new: China's latest property market plan off

to a poor start

** Israel Q1 economic growth rebounds 14.1%, lifted by

shopping, building

Key Latin American stock indexes and currencies:

Stock indexes Latest Daily % change

MSCI Emerging Markets 1097.68 1.2

MSCI LatAm 2489.15 -0.09

Brazil Bovespa 128109.72 0.06

Mexico IPC 57316.65 -0.24

Chile IPSA 6711.70 0.01

Argentina MerVal 1469299.74 -0.575

Colombia COLCAP 1411.92 0.4

Currencies Latest Daily % change

Brazil real 5.1257 0.21

Mexico peso 16.6920 -0.07

Chile peso 901 0.34

Colombia peso 3826.25 -0.21

Peru sol 3.7207 -0.42

Argentina peso 886.0000 0.00

(interbank)

Argentina peso 1075 2.33

(parallel)

(Reporting by Shashwat Chauhan in Bengaluru)