EMERGING MARKETS-Latam currencies head for worst monthly performance since August

* Colombia central bank rate decision on tap * Mexico economy grows 0.2% in Q1 from previous quarter * Brazil's job creation outpaces expectations in March * Argentina lower house approves Milei reform bill * Latam FX down 0.8%, stocks shed 1.4% By Bansari Mayur Kamdar April 30 (Reuters) - Stocks and currencies in Latin America fell on Tuesday, with both indexes headed for monthly losses as investors reassessed the Federal Reserve's interest rate easing path and geopolitical tensions drove a rush to safe-haven assets. The MSCI index for Latin American currencies fell 0.8% and was on track for its worst monthly performance in eight months, while regional stocks shed 1.4% by 1442 GMT. Weighing on emerging market currencies, investors have continually had to dial back expectations for the timing and magnitude of U.S. rate cuts this year after hotter-than-expected inflation reports. "The pressures working against EM currencies are relentless, as the Fed pulls back from its pivot late last year and the USD proves resilient," said Paul Mackel, global head of FX research at HSBC. "It does not help that several EM central banks are cutting their policy rates. Doubts have been lingering for some time that this could play out too fast, calling their actions into question. " The dollar index rose 0.3%, with all eyes now on the Fed's rate decision on Wednesday, when it is expected to keep borrowing costs unchanged. The Mexican peso slipped 0.3% against a firm dollar after data showed the South American country's economy posted better-than-expected first-quarter growth versus the previous three months. Brazil's real, Chile's peso and Colombia's peso shed nearly 1% each against the strengthening dollar. Investors awaited an interest rate decision by the Colombian central bank later in the day when it is expected to cut borrowing costs by 50 basis points. On the economic data front, Brazil's creation of formal jobs in March significantly outpaced expectations, while Chile's unemployment rate rose to 8.7% in the quarter through March as expected. Manufacturing production in Chile fell 2.1% in March on a yearly basis, the country's INE statistics agency said, well below the growth of 4.7% expected, while the Andean nation's copper output was flat. Bucking regional weakness, Argentina's MerVal jumped 3.2% to hit a record high after its lower house of Congress approved a sweeping economic reform plan proposed by President Javier Milei in an overall vote. More broadly, emerging market stocks were set to end their third month higher supported by recovery in China stocks, while emerging market currencies were set for a monthly decline. Local currency emerging market bonds have lost investors 2.2% this month. Key Latin American stock indexes and currencies at 1442 GMT: rtrs Latest Daily % change MSCI Emerging Markets 1046.72 -0.44 MSCI LatAm 2453.27 -1.42 Brazil Bovespa 126458.27 -0.7 Mexico IPC 57720.40 -0.19 Chile IPSA 6503.24 -0.72 Argentina MerVal 1349835.3 3.193 8 Colombia COLCAP 1379.21 -0.13 Currencies Latest Daily % change Brazil real 5.1754 -1.18 Mexico peso 17.0553 -0.31 Chile peso 954.1 -1.32 Colombia peso 3895.53 -1.01 Peru sol 3.75 -0.85 Argentina peso (interbank) 876.5000 0.06 Argentina peso (parallel) 1020 2.45 (Reporting by Bansari Mayur Kamdar in Bengaluru, editing by Ed Osmond)