EMERGING MARKETS-Latam FX mixed to start data-heavy week; Argentina bonds rally after Milei's speech

* Argentine dollar bonds rally on Milei's new reform push * JPMorgan EMBI Global Diversified spread narrows to 364 bps * Inflation data eyed from Mexico, Colombia, Chile * Latam stocks off 0.4%; FX up 0.1% (Updated at 3pm ET/2000 GMT) By Johann M Cherian and Lisa Pauline Mattackal March 4 (Reuters) - Major Latin American currencies were mixed on Monday, kicking off a week with data releases that could shed light on the likely path of local interest rates, while Argentinian government bonds rose on a fresh reform push from President Javier Milei. MSCI's index tracking Latam currencies edged 0.1% higher, led by Mexico's peso which rallied 0.3% to a seven-week high of 16.9557 to the dollar. Argentina's dollar bonds surged as investors cheered Milei's vow to "speed up" economic reform plans in a fiery speech to Congress late Friday. The country's equities index rose in early trading before falling 0.8%. Argentina's bond rally helped to tighten the premium investors demand to hold emerging market hard-currency bonds to 364 basis points. That is the lowest level since January 2022, data from JPMorgan's EMBI Global Diversified showed. The rally was driven by high-yield names which chalked up healthy gains on Monday, with international government bonds issued by the likes of Egypt, Pakistan, Ukraine all up more than 1 cent on the dollar, extending last week's gains. Inflation numbers from Mexico, Colombia and Chile are due this week, while Peru's central bank is expected to cut rates by 25 basis points on Thursday. "Latin American central banks may wish to express some caution in the near-term as Fed expectations are once again in flux," said Bob Savage, head of market insights at BNY Mellon, in a note. Rate cuts in Peru this week are likely, he added. Federal Reserve Chair Jerome Powell's testimony before lawmakers this week is also in focus. Growing expectations that borrowing costs will remain higher-for-longer in the world's largest economy continue to weigh on emerging market assets. Peru's sol slipped 0.2% while Brazil's real rose 0.1%. Copper exporter Chile's peso weakened 0.9% as prices of the metal steadied against a backdrop of demand uncertainty in top consumer China. Investors also eyed China's annual parliamentary meeting where moderate stimulus plans to stabilize growth are expected, given slowing growth and a property crisis. Colombia's peso slipped 0.2% ahead of respective February inflation reports on Thursday. "The more interesting story would be the Colombian print, because it has been the most stubborn inflation dynamic in the region," said Eduardo Ordonez Bueso, EM debt portfolio manager at BankInvest. MSCI's gauge of Latin American equities lost 0.4%, with Brazil's Bovespa down 0.6% as losses in financial and utility stocks weighed. Colombia's Ecopetrol dropped over 4% after reporting fourth-quarter profit slid 38% as oil prices fell. Key Latin American stock indexes and currencies at 2000 GMT: Latest Daily % change MSCI Emerging Markets 1030.09 0.53 MSCI LatAm 2522.09 -0.42 Brazil Bovespa 128432.11 -0.58 Mexico IPC 55531.02 -0.01 Chile IPSA 6340.77 -2.17 Argentina MerVal 1047054.19 -0.749 Colombia COLCAP 1293.62 0.56 Currencies Latest Daily % change Brazil real 4.9472 0.02 Mexico peso 16.9556 0.33 Chile peso 975.5 -0.95 Colombia peso 3943.4 -0.09 Peru sol 3.7628 -0.20 Argentina peso 844.0000 -0.12 (interbank) Argentina peso 995 5.53 (parallel) (Reporting by Johann M Cherian in Bengaluru; Editing by Kirsten Donovan and Richard Chang)