U.S. Markets closed

EMERGING MARKETS-Latam FX rises as inflation data hits the dollar; stocks slide

March 12 (Reuters) - Latin American currencies rose on Tuesday as the dollar shed earlier gains after data showed U.S. consumer prices rose at a modest pace last month, while most stock indexes edged lower.

The dollar pared gains again the Japanese yen and extended losses against the euro after U.S. consumer prices data showed that inflation remains low despite a tight labor market, bolstering the Federal Reserve's case for keeping interest rates on hold.

Robust gains from Brazil's real and Colombia's peso on the back of higher oil prices boosted the MSCI's index for Latin American currencies.

In Mexico, the peso pared gains and the stock index declined after news emerged that the government may delay the construction of the Dos Bocas refinery and instead funnel the $2.5 billion earmarked in 2019 for the project into state oil firm Pemex.

Pemex, which holds the largest debt of any Latin American oil company was downgraded by rating agencies S&P and Fitch over the last two months, leaving questions hanging over Mexico's sovereign credit rating.

Chile's peso rose about half a percent on the back of higher copper prices, while stocks on the IPSA index were marginally lower.

Sao Paulo-traded stocks were marginally lower, with businesses still influenced by expectations about pension reform.

Colombia's IGBC index hit a five-month high, while the peso rose 0.7 percent on the back of higher oil prices.

Investors also watched developments related to Boeing in the region with Gol in Brazil temporarily suspending 737 MAX flights and Argentina's state airline Aerolineas Argentinas and Mexico's Aeromexico following suit.

Key Latin American stock indexes and currencies at 1528 GMT Stock indexes daily % Latest change MSCI Emerging Markets 1050.99 0.95 MSCI LatAm 2808.47 0.42 Brazil Bovespa 97921.72 -0.11 Mexico IPC 41837.08 -0.09 Chile IPSA 5292.80 -0.12 Argentina MerVal 34185.63 1.17 Colombia IGBC 12579.49 0.68 Currencies daily % change Latest Brazil real 3.8110 0.76 Mexico peso 19.3410 0.28 Chile peso 666.9 0.47 Colombia peso 3154.96 0.70 Peru sol 3.302 0.15 Argentina peso 41.3400 -0.17 (interbank) (Reporting by Agamoni Ghosh; Editing by Andrea Ricci)