EMERGING MARKETS-Mexico, Chile lead Latam FX up after US data; Brazilian equities lag

* Petrobras slumps after its CEO to step down * Peruvian economy contracts in March * Colombia Grupo Aval's profits fall 73% in Q1 * Latam stocks edge up 0.1%, FX up 0.3% (Updated at 1916 GMT) By Shashwat Chauhan and Johann M Cherian May 15 (Reuters) - The pesos of Mexico and Chile led Latin American currencies higher on Wednesday, as the dollar slid after a softer-than-expected U.S. inflation report, while worries about state-run oil giant Petrobras weighed on Brazilian equity markets. MSCI's index for Latin American currencies rose 0.3% against the dollar which dropped to month-ago levels after data showed April U.S. consumer prices rose less than expected, reinforcing expectations that the Federal Reserve will cut interest rates in September. The Mexican peso appreciated 1% to a month's high as higher crude prices supported the oil exporting country's currency. Copper producer Chile's peso strengthened 1% to over a three-month high as the red metal's value rose. Fellow copper producer Peru's sol inched up 0.1%. Data showed the Andean economy contracted 0.28% in March from a year earlier, reversing two straight months of growth. Colombia's peso ticked up 0.5% to over a month's high. The oil producer's economy grew 0.7% year-on-year in the first quarter, meeting market expectations. "Domestic demand was the main source of the low growth. The performance of fixed investment and the manufacturing industry remains concerning," said Mauricio Hernández, senior economist of BBVA Research in Colombia. Among laggards was Brazil's real. The region's largest economy contracted more than expected in March but clinched a positive performance in the first quarter, central bank data showed. MSCI's gauge for Latin American equities crept up 0.1%, limited by heavyweight Brazil's main index which dropped to lows of more than a week ago. Petrobras slid over 5% to a month's low and was the biggest drag on the Bovespa after the state-run oil firm said its chief executive would be replaced by a former regulator with views closer to those of President Luiz Inacio Lula da Silva. The firm also posted downbeat first-quarter earnings. "Lula has been vocal in his calls for Petrobras to be run for the benefit of Brazil as opposed to shareholders. We wouldn't be surprised if he turns these calls into greater pressure and, ultimately, action," Allen Good, director of Morningstar, wrote. Among others, JBS jumped 7.8% to a 20-month high after the world's largest meatpacker reported strong first-quarter results despite headwinds faced by its large U.S. beef business. Argentina's main stock index rose over 4% to a one-week high, a day after its central bank cut the benchmark interest rate to 40% after inflation slowed for the fourth straight month. Key Latin American stock indexes and currencies: Latin American market prices from Reuters Stock indexes Latest Daily % change MSCI Emerging Markets 1087.88 0.64 MSCI LatAm 2495.49 0.09 Brazil Bovespa 128152.71 -0.28 Mexico IPC 57641.37 0.72 Chile IPSA 6723.18 -0.08 Argentina MerVal 1464280.57 3.858 Colombia COLCAP 1407.82 0.36 Currencies Latest Daily % change Brazil real 5.1393 -0.20 Mexico peso 16.6801 0.92 Chile peso 905.3 0.95 Colombia peso 3818.25 0.61 Peru sol 3.7049 0.02 Argentina peso 885.5000 0.00 (interbank) Argentina peso 1080 -0.93 (parallel) (Reporting by Shashwat Chauhan and Johann M Cherian in Bengaluru, Editing by Nick Zieminski and Richard Chang)