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EMERGING MARKETS-Dollar strength casts a pall on Latam FX, stocks fall

Oct 1 (Reuters) - Latin American currencies slumped on Tuesday in line with their emerging market peers as the dollar held to a 29-month high, while uncertainty related to U.S.-China trade, coupled with global growth worries, kept investors from making riskier bets. MSCI's index of Latin American currencies fell 0.3% lower to hit a near-one month low, with Argentina's peso leading losses. Final PMI readings in Europe at seven-year lows and weak confidence readings in Japan led investors to ride on the greenback, denting most developing world currencies. "We think that the weakness in EM currencies has further to go," said Morgan Stanley analysts in a note, "and we think more disappointment is due for October." Representatives from the United States and China are due to meet for high-level trade talks next week in Washington but it is not clear if they will be able to resolve the dispute. Brazil's real weakened 0.5% despite industrial production rising in August at its fastest pace in over a year, as a strong dollar took its toll on the currency. The Bovespa fell 0.5% with meatpacker BRF sliding 2% lower after admitting to bribing food inspectors with bank deposits and health benefits. Mexican stocks were marginally higher, while the peso softened 0.3%. Chile's peso made the smallest losses after data showed economic activity rose 3.7% in August from a year ago, beating expectations and boosted by a surge in mining following several months of sluggish growth.

Latin American stock indexes and currencies at 14:08 GMT

Stock indexes daily % change

Latest

MSCI Emerging Markets 997.91 -0.31MSCI LatAm 2647.93 -0.71Brazil Bovespa 104205.77 -0.52Mexico IPC 43026.83 0.04Chile IPSA 5039.21 -0.39Argentina MerVal - -Colombia IGBC 12874.34 0.33Currencies daily % change

Latest

Brazil real 4.1776 -0.55Mexico peso 19.7876 -0.30Chile peso 729.1 -0.11Colombia peso 3490.57 -0.40Peru sol 3.3898 -0.61Argentina peso 57.7200 -0.22

(interbank)

(Reporting by Agamoni Ghosh Editing by Nick Zieminski)