News: BHP EMERGING MARKETS-Mexican peso leads Latam FX down as US inflation data bolsters Fed rate...

	  US economic growth slows in first quarter; inflation 

surges

	  Lower iron, nickel and copper prices weigh on Vale's 

earnings

	  Cement maker Cemex's Q1 profit climbs despite dip in 

volumes

	  Latam FX off 0.4%, stocks down 0.5% 

The Mexican peso led losses among Latin American currencies on Thursday, after hotter-than-expected U.S. inflation data reignited concerns that the Federal Reserve would delay cutting interest rates.

The MSCI index for Latin American currencies .MILA00000CUS slid 0.4% by 1500 GMT.

The peso MXN= weakened 1.1% against the dollar on the news of sticky U.S. inflation.

"What seems to be now causing some havoc across markets is the thought that we may witness a cycle of 'stagflation' in the U.S., a time when the economy stagnates while prices remain elevated without reprieve," said Juan Perez, director of trading at Monex.

"LATAM odds of exercising loose monetary policy and stay stimulative are basically cemented."

Other Latin American currencies such as the Brazilian real BRL= and Colombia's peso COP= shed 0.5% and 0.7%, respectively, against the greenback.

Bucking regional weakness, top copper producer Chile's peso CLP= rose 0.2%, tracking firm prices of the metal as funds chased the market higher after a takeover bid by BHP for Anglo American, which analysts said was focused on copper.

Stocks in Latin America .MILA00000PUS fell 0.5%. Mexican stocks .MXX eased 0.1% as Arca Continental AC.MX shares fell 2.1% after the bottler's first-quarter profit was eroded by the strong Mexican peso.

Cement-maker Cemex CEMEXCPO.MX shed 1.2% after reporting lower operating earnings, even though first-quarter net profit rose 13% on lower taxes and less exposure to financial derivatives.

Brazil's Bovespa index .BVSP fell 0.4%, as heavyweight miner Vale VALE3.SA weakened after it said lower prices for iron ore, nickel and copper in the first quarter dragged down earnings from the year-ago period.

Argentina's MerVal .MERV rose 1.2% as stocks rebounded after two days of sharp losses.

Turkey's lira TRYTOM=D3 was mostly flat after the country's central bank kept its main interest rate steady at 50%, as expected.

Sri Lanka's central bank said it is paramount that the country stick to its Extended Fund Facility agreement with the International Monetary Fund and complete its debt restructuring process, it said in a report issued on Thursday.

Key Latin American stock indexes and currencies at 1500 GMT:

   Stock indexes			 Latest		Daily % 
										   change 
 MSCI Emerging Markets		 1027.76		  -0.67 
  .MSCIEF								

 MSCI LatAm					2407.33		  -0.56 
  .MILA00000PUS						  

 Brazil Bovespa			  124188.19		  -0.44 
  .BVSP								  

 Mexico IPC				   56423.66		  -0.07 
  .MXX								   

 Chile IPSA					6321.93		  -0.65 
  .SPIPSA								

 Argentina MerVal		   1216873.29		  1.181 
  .MERV								  

 Colombia COLCAP			   1345.39		   0.15 
  .COLCAP								

	  Currencies			 Latest		Daily % 
										   change 
 Brazil real					5.1701		  -0.45 
  BRBY								   

 Mexico peso				   17.2625		  -1.20 
  MXN=D2								 

 Chile peso					  949.8		  -0.02 
  CLP=CL								 

 Colombia peso  COP=			3969.6		  -0.77 
										 
 Peru sol					   3.7413		  -0.66 
  PEN=PE								 

 Argentina peso			   873.5000		   0.00 
 (interbank)  ARS=RASL				   

 Argentina peso				   1020		   1.47 
 (parallel)  ARSB=