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EMERGING MARKETS-Most Latam stocks and currencies retreat on China COVID woes

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* Consumer prices in Brazil rise less than expected in May * Colombian assets fall as oil prices decline * Mexico's annual inflation rate hits 7.65% in May (Adds comment; updates prices, details) By Shreyashi Sanyal and Bansari Mayur Kamdar June 9 (Reuters) - Most Latin American stocks and currencies fell along with their broader emerging market peers on Thursday after Shanghai imposed new lockdown measures, while the Peruvian sol rose ahead of a central bank announcement where it is expected to hike key rates. Stocks in China, one of Latin America's biggest trading partners, ended lower, hurting the broader emerging markets equities index. The MSCI's index for Latin American stocks fell 1.6%, with Colombia stocks in the lead, as oil prices dropped on China demand worries. The Colombian peso fell 1.2% against the dollar. The Peruvian sol firmed 0.4% ahead of the central bank's monetary policy statement where it is expected to hike benchmark interest rate by 50 basis points to 5.50% as authorities battle stubborn inflation. "You're probably seeing a little bit of positioning ahead of the rate decision. The market is widely expecting a half point rate increase, and there's an expectation that you could get some more hawkishness in the statement afterwards," said Edward Moya, senior market analyst at OANDA. Brazil's real edged 0.2% lower in choppy trading. Consumer prices in Brazil as measured by the benchmark IPCA index rose 0.47% in May, below market forecasts. "The fall in Brazilian inflation in May suggests that Copom will continue to slow the pace of tightening with a 50 basis point Selic rate hike to 13.25%, next week," said Nikhil Sanghani, emerging markets economist at Capital Economics. "But with inflation set to stay in double-digit territory in the coming months, we doubt that this would mark the end of the tightening cycle." Brazilian stocks fell 0.7%, dragged down by declines in miner Vale SA. Eletrobras rose 3.7% after demand for shares in the power holding company in its privatization neared 70 billion reais ($14.3 billion) and the offering is twice oversubscribed, two sources with knowledge of the matter said. In Mexico, data showed consumer prices rose 7.65% in the year through May, slightly above expectations even as the central bank drives a monetary tightening cycle to tame high inflation. The peso fell 0.5% against the greenback. The Mexican central bank, known as Banxico, said last week it was willing to act more forcefully on monetary policy if needed to bring inflation back down to target, and could raise rates by 75 basis points at its next meeting later this month. Separately, a poll by Reuters showed Argentina's benchmark interest rate is likely to be increased another 200 basis points next week as the central bank seeks to counter soaring and painful inflation that could top 70% this year. Key Latin American stock indexes and currencies at 1925 GMT: Stock indexes Latest Daily % change MSCI Emerging 1065.36 -0.78 Markets MSCI LatAm 2318.18 -1.52 Brazil Bovespa 107584.33 -0.72 Mexico IPC 49462.69 -0.72 Chile IPSA 5237.53 -0.76 Argentina MerVal 89114.87 -0.925 Colombia COLCAP 1531.05 -1.9 Currencies Latest Daily % change Brazil real 4.9073 -0.39 Mexico peso 19.6731 -0.57 Chile peso 824.1 -0.35 Colombia peso 3842.5 -1.22 Peru sol 3.7398 0.40 Argentina peso 121.6200 -0.13 (interbank) Argentina peso 205 1.46 (parallel) (Reporting by Shreyashi Sanyal and Bansari Mayur Kamdar in Bengaluru; Editing by David Clarke and Lisa Shumaker)