EMERGING MARKETS-Latam assets track commodity gains as trade uncertainty persists

By Pranav Kashyap

April 24 (Reuters) - Most Latin American assets edged higher on Thursday, with commodity prices offering some support, although mixed signals from the White House regarding tariffs on China unravelled a brief rally.

The MSCI index for Latin American stocks .MILA00000PUS added 0.7%, while the currencies index .MILA00000CUS edged higher by 0.2%.

Both indexes had reached multi-month highs in the prior session on reports that the Trump administration might consider easing tariffs on Chinese imports. However, neither side has shown a willingness to initiate negotiations, maintaining investor caution, with the U.S. dollar sliding.

Mexico's peso MXN= and Colombia's peso COP= rose 0.2% and 0.9%, respectively tracking higher crude prices that stabilized a day after prices fell on a potential OPEC+ output increase.

The Mexican benchmark index .MXX climbed 1% as investors anticipated the Bank of Mexico would persist with its monetary easing, following data indicating inflation was within the 2% to 4% target range.

"The rise in Mexico's headline inflation rate is unlikely to shift Banxico's (Bank of Mexico) focus away from the weakness of the economy and we expect it to deliver another 50 basis point rate cut, to 8.50%, at its meeting next month," said Jason Tuvey, deputy chief emerging markets economist at Capital Economics.

Latin American assets have faced the least selling pressure among emerging market peers since early this month, as the U.S. imposed minimal tariffs on the region's countries.

In Brazil, the real BRL= gained 0.5%. The central bank announced late on Wednesday that it would begin auctions on April 28 to roll over $18.4 billion in traditional currency swaps.

In Chile, the central bank is expected to hold rates at 5% when it meets next week. The peso CLP= was up 0.5%, tracking copper prices.

Chile's benchmark index .SPIPSA rose 0.8%. SQM's U.S.-listed shares SQM.N rose 2% after the country's competition regulator approved a deal between Codelco and the miner to form a joint venture to expand lithium production.

In Argentina, Deputy Central Bank Governor Vladimir Werning anticipated the peso currency would reach the lower end of its newly implemented trading band, after it was freed from longstanding controls designed to prevent its devaluation.

The peso ARS=RASL was last down 0.9%, while the local stocks index .MERV gained over 3% aided by energy giant YPF's YPFDm.BA 4% gain.

The International Monetary Fund's Managing Director Kristalina Georgieva encouraged Argentina to remain steadfast in its efforts to stabilize the economy by addressing double-digit inflation and significant deficits.

Key Latin American stock indexes and currencies at 1446 GMT: