EMERGING MARKETS-Latam currencies gain on hopes of delayed tariffs; Ukraine-US minerals deal on radar

Updates with mid-session trading

By Lisa Pauline Mattackal and Purvi Agarwal

Feb 26 (Reuters) - Most Latin American currencies strengthened on Wednesday as investors hoped for another pause on U.S. tariffs on the country's neighbors, while a minerals deal between the U.S. and Ukraine lifted emerging European currencies.

U.S. President Donald Trump raised hopes for another pause on new tariffs on Mexican and Canadian imports by saying they would take effect on April 2, about a month later than a deadline next week.

The Mexican peso MXN= was up 0.2% against the dollar.

However, a White House official said the March 4 deadline for tariffs remained in effect "as of this moment," pending Trump's review of Mexican and Canadian actions to secure their borders.

LatAm currencies recouped early declines, that were logged after Trump ordered a probe into potential new tariffs on copper imports.

The Peruvian sol PEN= led gains with a 0.5% rise, trading around levels last seen in April, while Chile's peso CLP= was up 0.1%. Colombia's currency COP= was 0.4% higher.

"The delay is perhaps suggesting that there is more space to negotiation and at the end we will be able to see some sort of a deal between the U.S., Mexico and Canada," said Andres Abadia, chief LatAm economist at Pantheon Macroeconomics.

"This is easing the pain in currencies that are closely linked to the US economy cycle."

The Brazilian real BRL= however, plunged 1.2%, on track for its biggest one day fall since January 10, as the dollar bounced back from recent declines.

Data showed Brazil's economy created nearly three times as many formal jobs in January as expected, defying recent economic indicators pointing to a slowdown.

MSCI's index tracking Latin American currencies .MILA00000CUS was off 0.5%, while an index of stocks .MILA00000PUS fell 0.6%.

Equity indexes were broadly lower, with ones in Brazil .BVSP and Argentina .MERV down 0.7% and 0.3% respectively. Chile's IPSA .SPIPSA and Mexico's main index .MXX were 0.5% and 0.4% higher.

Trump also announced a reversal of concessions of the "oil transaction agreement" given to Venezuela by his predecessor Joe Biden more than two years ago.

Elsewhere, markets in emerging Europe rallied after the Ukrainian government backed a critical minerals deal with the U.S. at the heart of Kyiv's push to win Trump's support.

Most Ukrainian dollar bonds rallied more than 1 cent, with the 2029 bond XS2895055981=TE up 1.4 cents to 72.4 cents on the dollar.

"(The deal) does take some of the big downside risks off the table, but ... it's just one very small step towards a peace deal much further down the line," Nick Rees, head of macro research at Monex.

The rouble RUB= however, reversed earlier gains to trade 0.3% lower against the dollar.

Israel's shekel ILS= was up 0.5% after Hamas agreed to free the last hostage bodies included in the initial phase of the Gaza ceasefire.

HIGHLIGHTS

Brazil stocks rebound to continue, outlook dented after recent fall

IMF team to visit Pakistan next week with $7 bln bailout review due

Key Latin American stock indexes and currencies at 2007 GMT: