EMERGING MARKETS-Mexico's peso lags Latam FX after inflation data

* Mexico headline inflation speeds up slightly in March * El Salvador launches tender offer for external debt due 2025-2029 * Grupo Financiero Galicia to buy HSBC business for $550 mln * Latam stocks up 1.0%, FX adds 0.5%. By Bansari Mayur Kamdar April 9 (Reuters) - The Mexican peso lagged Latin American peers on Tuesday after data showed headline inflation in the region's second-largest economy rose up slightly in March, although less than expected. The peso inched 0.2% down against the dollar, retreating from its highest level in nine years. Mexico's headline inflation reached 4.42% in March, a modest increase from the 4.40% seen in February, although below the 4.50% expected by economists polled by Reuters. Meanwhile, core inflation, that excludes some volatile food and energy prices, continued to moderate, standing at 4.55% in March, a decrease from the previous month's 4.64%. "The CPI data not showing stubborn inflation serves as fuel for markets to believe that Banxico can afford to do another interest rate cut sooner rather than later," said Juan Perez, director of trading at Monex. "Unlike all other currencies, MXN has performed in an impressive way against the buck all of 2024 so there is some profit-taking also finally taking place." The MSCI index for Latin American currencies added 0.5%. Investors remained cautious globally ahead of U.S. inflation data on Wednesday that could provide more clues on the Federal Reserve's rate cut path, with the dollar softening marginally. Firm copper prices lifted the currency of top producer Chile up 0.7%. Brazil's real rose 0.4% against the greenback, ahead of its domestic monthly inflation report later this week. Oil producer Colombia's peso added 0.2% and was on track to extend gains for a sixth straight session against the dollar as crude prices rebounded on fading hopes that negotiations between Israel and Hamas would produce a ceasefire in Gaza. Domestically, Colombian leftist rebel group the National Liberation Army (ELN) has requested an extraordinary meeting with the government, saying peace talks were in a "critical state," sources from the government and the rebel group said. Latin American stocks advanced 1%, with Argentina's Merval climbing 2.8% and extending gains for third straight session. Shares of Grupo Financiero Galicia jumped 5.0% after the company bought the business of the local subsidiary of HSBC for about Grupo Financiero Galicia to buy the business for $550 million. Meanwhile, Argentine annual inflation is expected to hit 189.4% this year, a central bank poll of analysts showed on Monday El Salvador launched a tender offer for its external debt due from 2025 to 2029, President-elect Nayib Bukele said on Monday in a post on X. Elsewhere in emerging markets, Russian stocks rose to their highest since before Russia invaded Ukraine in February 2022, boosted by market expectations that borrowing costs will be eased later this year. Domestic shocks in emerging economies in the G20 are increasingly impacting growth in the rich world, according to a report by the International Monetary Fund. HIGHLIGHTS: ** IMF reaches staff-level deal with Ivory Coast ** Taiwan stocks hit record high on TSMC boost ** Mexico to cut at least 330,000 bpd of crude exports in May, sources say Key Latin American stock indexes and currencies at 1435 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1056.72 0.72 MSCI LatAm 2589.31 1 Brazil Bovespa 129874.03 0.79 Mexico IPC 58057.83 0.12 Chile IPSA 6613.34 0.15 Argentina MerVal 1263281.25 2.736 Colombia COLCAP 1402.96 1.17 Currencies Latest Daily % change Brazil real 5.0054 0.48 Mexico peso 16.3500 -0.23 Chile peso 938.4 0.60 Colombia peso 3757.47 0.13 Peru sol 3.6801 -0.09 Argentina peso 864.5000 0.00 (interbank) Argentina peso 970 1.55 (parallel) (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Angus MacSwan)