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EMERGING MARKETS-Latam assets broadly fall as growth fears weigh

(Updates prices, adds market strategist's quote on Mexican peso) By Aaron Saldanha May 15 (Reuters) - A Latin American stocks benchmark fell on Wednesday, while most Latin American currencies weakened against the dollar as surprisingly weak data out of China dented risk sentiment and overcame optimism arising out of news of the United States planning to delay a decision on tariffs on auto imports.

Data showing China's industrial output growth in April slowed more than expected set a negative tone overnight for Latin American markets. The world's second-largest economy is a key destination for exports of Latin American resources.

The pall cast by the Chinese data was partially brightened by U.S. officials saying President Donald Trump is expected to delay a decision on tariffs on imported cars and parts by up to six months.

MSCI's Latin American stocks index fell 0.7% on the back of losses among stocks in index heavyweight Brazil. MSCI's index of Latin American currencies dipped 0.3%.

Sao Paulo-traded stocks dropped 0.5%, with most sectors declining.

Kroton Educacional SA and planemaker Embraer dived 5.2% and 4.2%, respectively, after each firm's first-quarter results left their investors with limited cause for optimism.

The two stocks were among the biggest losers on the Bovespa, which fell under the 92,000-point mark to end at its lowest closing level since early 2019.

Brazil's real weakened 0.6%, while yields on local 10-year bonds rose 9 basis points to 8.90%.

Goldman Sachs economists cut their economic growth forecasts for Brazil, predicting Latin America's top economy shrank in the first quarter this year and will struggle to grow much faster in 2019 than it did in each of the last two years.

Alberto Ramos, Goldman Sachs's head of Latin American economic research, wrote in a note that progress towards fiscal consolidation remains "quintessential to anchor market sentiment" and to leverage what has been "so far a very shallow and disappointing recovery." Mexican stocks dipped 0.2%, although the peso firmed 0.5%, a day before a Banco de Mexico (Banxico) review of borrowing costs. Many investors expect it to leave the key rate at 8.25%.

"Banxico will cut rates in H2 (2019) but we continue to expect that slightly later in the year than the summer move implied by the curve," Christian Lawrence, senior market strategist at Rabobank, wrote in a note.

"We would also argue that the door is still open for a hike should the peso slump dramatically ... we expect the USD/MXN pair to continue trading an 18.90 to 19.50 range in the next 1-3 months." Chile's peso edged firmer, underpinned by stronger prices of copper, the country's top export.

Argentina's stocks rose 2.2%, while the peso marked time.

Argentina consumer prices rose by 3.4% in April, data showed, decelerating from a month earlier and providing some welcome relief to President Mauricio Macri as he looks to rein in stubbornly high inflation in an election year.

Latin American stock indexes and currencies at 2108 GMT Stock indexes daily % Latest change MSCI Emerging Markets 1,015.97 0.2 MSCI LatAm 2,587.50 -0.72 Brazil Bovespa 91436.98 -0.71 Mexico IPC 43338.82 -0.21 Chile IPSA 5005.24 -0.27 Argentina MerVal 33218.06 2.18 Colombia IGBC 12248.63 -0.35 Currencies daily % change Latest Brazil real 4.0009 -0.13 Mexico peso 19.0544 -0.04 Chile peso 690.8 0.01 Colombia peso 3282.75 0.00 Peru sol 3.317 0.15 Argentina peso (interbank) 44.9600 0.02 (Reporting by Aaron Saldanha in Bengaluru Editing by Chris Reese)