* LatAm stocks down 1.4%, FX off 0.8%

* Chile inflation below analyst expectations in May

* Colombia's consumer prices increased 0.47% in May

(Updates with afternoon levels)

By Avinash P and Ragini Mathur

June 8 (Reuters) - Peruvian equities slid on Monday as a

tight presidential race stoked fears of renewed political

volatility, while broader Latin American assets fell as Middle

East uncertainty kept risk appetite in check.

Leftist Roberto Sanchez edged ahead in Peru's official count

with 50.01% of the vote, versus 49.9% for Keiko Fujimori, with

about 94% of ballots tallied. Fujimori had led after polls

closed on Sunday, but Sanchez steadily narrowed the gap as

counting progressed.

The close contest injected uncertainty into markets. Peru's

benchmark stock index hit its lowest intraday

level in more than two months, while the U.S.-listed iShares

Peru ETF was last down 1%.

"Markets had priced in a Fujimori victory; voters have

delivered uncertainty instead," said Alexander Robey, portfolio

manager for emerging market debt at AllianzGI.

The result is expected to shape Peru's policy outlook on

business confidence, foreign investment and mining. Fujimori has

pledged to maintain the country's pro-market status quo, while

Sanchez has adopted a more pragmatic tone after earlier

proposals to overhaul the mining sector and his ties to jailed

former President Pedro Castillo rattled investors.

"Even if Sanchez has moderated, markets will not quickly

forget earlier calls for constitutional change and greater state

control of natural resources," Robey said.

The sol was flat, while a broader index of Latin

American currencies fell 0.8%.

The U.S. dollar eased from near two-month highs after

Iran's military said its first wave of attacks on Israel since

an April ceasefire had ended, though Tehran warned it could

resume strikes if Israel continued attacks on Lebanon.

"A situation of 'no deal, no war' between the U.S. and Iran

may not be able to last indefinitely," said Thierry Wizman,

global FX and rates strategist at Macquarie Group.

"If a U.S.-Iran deal is not reached - presumably via

concessions from both sides - then the prospect is that a new

round of large-scale kinetic warfare will resume."

COLOMBIAN ELECTIONS IN FOCUS

Colombia is also navigating a tense presidential race, with

right-wing lawyer Abelardo De La Espriella set to face left-wing

candidate Iván Cepeda in a June 21 runoff after Cepeda

acknowledged the first-round results on Sunday.

The runoff presents a stark policy divide. De La Espriella

has promised a hardline security agenda, including military

expansion and 10 megaprisons, while Cepeda is campaigning on

higher social spending and peace talks with armed groups.

Colombia's COLCAP index fell 1.6%, marking its

third straight session of losses, while the peso rose

0.1%.

Data released on Friday showed Colombia's consumer prices

rose 0.47% in May, according to statistics agency DANE.

MSCI's index of Latin American stocks fell

1.4%.

In Chile, consumer prices rose 0.2% in May from the previous

month, less than analysts had expected, statistics agency INE

said on Monday. Santiago's benchmark index slipped

0.9%, while the peso edged 1% lower.

Brazil plans to announce its first-ever yuan-denominated

sovereign bond issuance in China during a visit by a large

government delegation later this month, two people with direct

knowledge of the matter told Reuters.

Brazil's Bovespa index was down 0.2%, while the real

weakened 0.2% against the dollar.

Key Latin American stock indexes and currencies:

Stock indexes Latest Daily % change

MSCI Emerging Markets 1657.62 -3.48

MSCI LatAm 2848.02 -1.36

Brazil Bovespa 168644.94 -0.22

Mexico IPC 65640.25 -0.76

Chile IPSA 10180.81 -0.89

Argentina MerVal 3138445.01 1.75

Colombia COLCAP 2192.97 -1.58

Currencies Latest Daily % change

Brazil real 5.1768 -0.18

Mexico peso 17.4565 0.05

Chile peso 921.58 -0.97

Colombia peso 3589.13 0.11

Peru sol 3.4697 -0.01

Argentina peso 1,446.0 -0.31

(interbank)

Argentina peso 1,425.0 0.7

(parallel)

(Reporting by Avinash P in Bengaluru and Libby George in

London; Editing by Jan Harvey and Arun Koyyur)