EMERGING MARKETS-Latam currencies, stocks slip as Middle East tensions, Fed worries weigh

* Geopolitical worries in Middle East hit EM assets * Brazil relaxes 2025 fiscal targets * Chile's Antofagasta expects higher 2024 copper prices * Latam currencies down 0.5%, stocks fall 1.3% (Updated at 3:45 pm ET/1945 GMT) By Bansari Mayur Kamdar and Lisa Pauline Mattackal April 15 (Reuters) - Currencies and stocks in Latin America fell steeply amid a cautious global mood on Monday, as dwindling Federal Reserve rate cut hopes weighed and investors assessed the impact of rising geopolitical tensions in the Middle East after Iran's missile and drone attack on Israel. The MSCI indexes for Latam currencies fell 0.5%, set for its lowest close since February. A basket of regional stocks dropped 1.3%, on track for a fourth consecutive session in the red. The currency index ended Friday with its worst weekly performance since October as the U.S. dollar soared on concerns the Fed will keep rates higher for longer. Investors were cautious after Iran launched a missile and drone attack against Israel over the weekend in retaliation for a suspected attack on its embassy. However, calls for restraint from Israel helped soothe some tensions in the region. "We continue to believe a broader regional conflict is not imminent," analysts at Wells Fargo wrote, adding the escalation in Iran had not changed their long term investment views. "Sentiment and oil prices are the most likely channels through which the global economy, monetary policy and financial markets could be interrupted." The currencies of Brazil, Colombia and Chile each slipped about 1.3% versus the dollar, which touched its highest in over five months. Brazil's government set a fisca l target of zero primary deficit for 2025, Finance Minister Fernando Haddad said, relaxing the previous target of a 2025 surplus of 0.5% of gross domestic product. The real fell after the announcement, and stocks in Brazil slipped 0.4%. Elsewhere, shares of Brazil's BRF leapt over 10% to their highest since 2022 after ratings upgrades from JPMorgan and Goldman Sachs. Bank of Mexico Deputy Governor Jonathan Heath said the country's inflation in the country was showing signs of persistence and that difficult terrain lay ahead for policymakers. Mexico's peso slipped 0.6% against the dollar and stocks lost 0.8%. Elsewhere in emerging markets, Israel's shekel jumped 0.5% against the dollar in what market players said was a "relief rally" as Israel had not hit back at Iran so far. Peru's sol lost 0.8%, despite data showing the economy notched its best month of growth in nearly two years. Ghana failed to strike a deal with two bondholder groups to restructure $13 billion of international bonds. HIGHLIGHTS ** Amundi says Indian equities, ex-China EM to offer the appealing returns ** Ashmore reports drop in AUM ** U.S. extends license protecting Citgo from creditors through mid-August ** US says will not renew easing of Venezuela oil sanctions unless progress made on elections Key Latin American stock indexes and currencies at 1945 GMT: Latest Daily % change MSCI Emerging Markets 1029.90 -1.13 MSCI LatAm 2431.28 -1.33 Brazil Bovespa 125351.83 -0.47 Mexico IPC 56132.36 -0.77 Chile IPSA 6485.76 -1.19 Argentina MerVal 1196300.74 -3.875 Colombia COLCAP 1378.94 -0.85 Currencies Latest Daily % change Brazil real 5.1868 -1.27 Mexico peso 16.7146 -0.57 Chile peso 978.9 -1.29 Colombia peso 3905.81 -1.32 Peru sol 3.7238 -0.83 Argentina peso 868.0000 -0.12 (interbank) Argentina peso 995 1.01 (parallel) (Reporting by Bansari Mayur Kamdar and Lisa Mattackal in Bengaluru; Editing by Alexander Smith and Marguerita Choy)