EMERGING MARKETS-Latam stocks ease as investors assess US data, geopolitical developments

By Ragini Mathur and Twesha Dikshit

Jan 13 (Reuters) - Latin American stocks eased on Tuesday in choppy trading as investors assessed a key U.S. economic report while metal prices surged amid escalating geopolitical tensions.

MSCI's Latin American equities index .MILA00000PUS was down 0.5%, while the corresponding currency gauge .MILA00000CUS was little changed. Both indexes hit record highs in the previous session.

"Volatility due to policy and corporate earnings uncertainties may continue in coming weeks, which is why we expect our guidance to remain nimble and to treat market pullbacks as opportunities to rebalance funds toward emerging favorites," Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute, said in a note.

U.S. CONSUMER PRICES RISE

U.S. President Donald Trump's pledge on Monday to impose a 25% tariff rate on any country that does business with Tehran added to worsening global tensions. Still, despite multiple flashpoints across Iran, Greenland, and Venezuela, global investors continued to push markets higher.

U.S. consumer prices increased in December, official data showed, cementing expectations that the Federal Reserve would leave interest rates unchanged this month.

The dollar index =USD, which measures the greenback's strength against a basket of currencies, remained nearly flat after the data. The dollar has faced pressure this week amid concerns about the Federal Reserve's independence.

Analysts emphasized that these concerns — following the Trump administration's criminal investigation into Chair Jerome Powell — remain the most significant factor for markets in the long term.

In Latin America, the Mexican peso MXN= appreciated 0.3% to reach its strongest levels since July 2024, while the Colombian peso COP= rose 1.2%.

Chile's peso CLP= and the Peruvian sol PEN= edged higher against the dollar.

Among stocks, Peru's benchmark index .MXNUAMPESCPGPE gained 0.4%, hovering near record highs on support from soaring metal prices. Chile's shares .SPIPSA also gained 0.7% and hit an all-time high, benefiting from the copper price rally.

Argentina's stock index .MERV was down 0.2% ahead of the country's CPI data, which is scheduled for release later in the day.

Brazil's Bovespa .BVSP dipped 0.7% after services activity in Latin America's largest economy slipped in November, missing market forecasts as tight financial conditions took effect.

In other emerging markets, Indian government bonds declined on Tuesday after Bloomberg Index Services deferred the inclusion of Indian bonds in its flagship Global Aggregate Index, disappointing some investors who had been expecting inclusion and sending yields higher.

Key Latin American stock indexes and currencies at 1504 GMT: