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EMERGING MARKETS-Latam stocks, FX dip, growth concerns weigh on Brazil

By Aaron Saldanha May 15 (Reuters) - Latin American currencies broadly softened against the dollar on Wednesday and an index of Latin American stocks slid as surprisingly weak data out of China dented risk sentiment.

Data showed China's industrial output growth in April slowed more than expected, reflecting the effects of the U.S.-China trade war. The world's second-largest economy is a big destination for Latin American resource exports.

MSCI's index of Latin American currencies fell 0.3%, while its Latin American stocks index was 1.2% lower, after hitting its lowest level since the start of the year.

The indexes recovered a little lost ground after three U.S. administration officials told Reuters that President Donald Trump is expected to delay a decision on tariffs on imported cars and parts by up to six months.

Brazil's real weakened 0.6%, while yields on local 10-year bonds rose 3 basis points to 8.84%.

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 leverage what has been "so far a very shallow and disappointing recovery." Investors have been closely watching the progress of a proposal to reform Brazil's bloated pension system, which they feel is critical to bolster the economy by trimming a yawning fiscal deficit.

Brazilian stocks dropped 1.2%, weighed by losses across the board.

Planemaker Embraer and Kroton Educacional SA dived 4.2% and 6.7%, respectively, after each firm's first-quarter results left their investors with limited cause for optimism.

Cia Siderurgica Nacional fell 1.5%. It said a spillage in the steelworks of its Volta Redonda plant affected at least 20 employees and stopped production in the affected area.

Common shares and preferred shares of state-run oil firm Petroleo Brasileiro SA (Petrobras) fell 1.1% and 0.9%, respectively.

Mexico's peso softened marginally, while stocks slid 0.9%. Communication services shares contributed handily to the benchmark's decline.

Argentina's peso fell, while stocks rose 1.3% on gains among financials.

Colombia's peso declined 0.1%, as did local stocks .

Latin American stock indexes and currencies at 1409 GMT Stock indexes daily % Latest change MSCI Emerging Markets 1015.73 0.12 MSCI LatAm 2574.79 -1.2 Brazil Bovespa 90995.11 -1.19 Mexico IPC 43030.62 -0.92 Chile IPSA 4992.90 -0.52 Argentina MerVal 32938.00 1.31 Colombia IGBC 12274.41 -0.14 Currencies daily % Latest change Brazil real 4.0022 -0.67 Mexico peso 19.1637 -0.07 Chile peso 693 -0.30 Colombia peso 3293.55 -0.15 Peru sol 3.328 -0.18 Argentina peso (interbank) 45.2500 -0.62 (Reporting by Aaron Saldanha in Bengaluru Editing by Susan Thomas)