EMERGING MARKETS-Most Latam FX up on softer U.S. dollar, Brazilian markets lag

* Petrobras slumps after its CEO to step down * US CPI rises 3.4% year-on-year * Latam stocks down 0.1%, FX up 0.2% By Shashwat Chauhan May 15 (Reuters) - Most Latin American currencies rose against a softer dollar on Wednesday as latest U.S. inflation data boosted hopes that Federal Reserve could cut interest rates this year, while worries at state-run oil giant Petrobras weighed on Brazilian markets. Brazil's real shed 0.2% against the dollar amid sliding iron ore prices, while the local stock index dropped close to 1%. Shares of state-run oil firm Petrobras slid over 6% after the company said its chief executive would step down, to be replaced by a former regulator with views closer those of President Luiz Inacio Lula da Silva. Separately, Brazil's economy exhibited a higher-than-expected contraction in March but still managed to clinch a positive performance in the first quarter, central bank data showed. The Mexican peso appreciated 0.7% as the greenback lost strength after data showed U.S. consumer prices increased less than expected in April, suggesting that inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations for a September interest rate cut by the Fed. "This morning's in-line CPI print should assuage near-term fears that inflation has been re-accelerating after string of hotter prints in the first quarter," said Josh Jamner, investment strategy analyst at ClearBridge Investments. "While the Fed will want to see further data showing that inflation has resumed its drift lower before gaining confidence that they can lower interest rates, today's print should begin to shift the narrative back towards "when" the Fed will cut in 2024 rather than "if" they will cut." Colombia's peso also gained 0.4% in light trading. Surging copper prices helped top producer of the commodity Chile's peso rise 0.5% against the dollar, while Peru's sol inched 0.1% up in choppy trading. As of 10:50 a.m. ET (1450 GMT), MSCI's index for Latin American currencies rose 0.2%, while a gauge for stocks eased 0.1%. Equities in Mexico, Chile and Colombia advanced between 0.2% - 0.8%. Argentina's main stock index rose over 1% a day after its central bank cut the benchmark interest rate after inflation slowed for the fourth straight month and the annual rate crested just shy of 300%. HIGHLIGHTS ** Slovak PM Fico in life-threatening condition after assassination attempt ** Brazil's central bank fully committed to 3% inflation target, governor says Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 1086.53 0.52 MSCI LatAm 2490.99 -0.09 Brazil Bovespa 127385.04 -0.88 Mexico IPC 57678.81 0.78 Chile IPSA 6747.31 0.28 Colombia COLCAP 1408.25 0.39 Currencies Latest Daily % change Brazil real 5.1388 -0.19 Mexico peso 16.7136 0.71 Chile peso 909.6 0.47 Colombia peso 3829 0.33 Peru sol 3.6975 0.22 Argentina peso 885.5000 0.00 (interbank) Argentina peso 1055 1.42 (parallel) (Reporting by Shashwat Chauhan in Bengaluru, Editing by Nick Zieminski)