Strong growth numbers lift Mexico's peso

* Mexico's Q1 growth slightly stronger than estimated

* Optimism for Brazil's Bovespa tempered as fears grow over Oct vote -poll

* Consumer confidence in Brazil falls to 75.5 in May

By Bansari Mayur Kamdar

May 25 (Reuters) - The Mexican peso edged up on Wednesday after the country posted stronger-than-expected growth numbers, but gains were capped by a rebound in the dollar ahead of minutes from the U.S. Federal Reserve's last monetary policy meeting.

The peso MXN= inched up 0.1% after data showed Latin America's No. 2 economy grew slightly faster in the first quarter than initially estimated amid a recovery in manufacturing and services.

"Today's stronger growth rate gives them (central bank) a little bit more support so they can back the cycle and keep the 600 basis points spread between Mexican and U.S. policy rates," said Chris Turner, global head of FX Strategy at ING.

Separately, Mexico posted a $4.316 billion trade deficit in April when adjusted for seasonal swings.

The MSCI's index of Latin American currencies .MILA00000CUS climbed 0.2%, while stocks .MILA00000PUS gained 0.1%.

The dollar index =USD rose 0.4%, weighing on riskier currencies, in a market attentive to the Fed minutes for clues on the path of future interest rate hikes from the world's most influential central bank.

A weakness in China's yuan CNY= also weighed on Latin American currencies, added Turner.

Copper prices fell amid concerns that slowing economic growth and COVID-19 lockdowns in top consumer China would hurt demand, dragging leading copper exporter Chile's peso CLP= down 0.6%.

Brazil's real BRBY BRL= ticked 0.2% lower after data showed consumer confidence in the south American country fell to 75.5 in May from 78.6 in April. The Bovespa shares index .BVSP fell 0.3%, underperforming its regional peers.

A recent Reuters poll showed that Brazilian stocks will rise less than previously expected this year as fears over October's presidential vote tarnish the outlook for the second half and double-digit interest rates prompt a switch to deposit accounts.

The Colombian peso COP= rose 0.8% against the dollar. The country is expected to vote for president on Sunday amid high polarization and grating inequality worsened by price rises, despite a post-pandemic economic recovery.

Elsewhere, Turkey's lira TRY= slid beyond 16.35 against the dollar to its weakest level since the depths of a December crisis, as analysts questioned authorities' ability to continue steadying it without new sources of foreign currency.

The Russian ruble RUBUTSTN=MCX reversed its rally and fell sharply past 60 to the dollar after the central bank announced an off-schedule rate meeting.

Key Latin American stock indexes and currencies at 1451 GMT:

Stock indexes

Latest Daily %

change MSCI Emerging Markets .MSCIEF


0.19 MSCI LatAm .MILA00000PUS


0.1 Brazil Bovespa



-0.12 Mexico IPC



0.47 Chile IPSA



0.53 Argentina MerVal



1.027 Colombia COLCAP





Latest Daily %

change Brazil real



-0.36 Mexico peso



0.08 Chile peso



-0.42 Colombia peso COP=


0.66 Peru sol



0.27 Argentina peso (interbank)


-0.13 ARS=RASL

Argentina peso (parallel) ARSB=



Reporting by Bansari Mayur Kamdar and Shreyashi Sanyal in Bengaluru; editing by Jonathan Oatis

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