By Avinash P

June 9 (Reuters) - Latin American assets gained on Tuesday, as investors cheered the halt in attacks between Iran and Israel and hoped for de-escalation in the wider Middle East conflict, while Peru's stocks were headed for their best day in nearly six years.

MSCI's index of Latin American stocks .MILA00000PUS added 1.6%, and were poised to break a four day loosing streak, while the gauge of Latin American currencies .MILA00000CUS was up 0.1%.

Iran and Israel halted attacks on each other after an appeal from U.S. President Donald Trump, but investors remain wary as diplomacy has so far failed to produce a peace deal or reopen the vital Strait of Hormuz.

The U.S. Dollar =USD slipped 0.2% on hopes of peace in the Middle East, aiding LatAm currencies.

In the region, Peruvian assets remained in focus as Leftist congressman Roberto Sanchez took a slim lead against conservative Keiko Fujimori in Peru's presidential race on Monday as official vote-counting continued into a second day, with a final result potentially weeks away.

With about 94.9% of votes tallied, Sanchez rose to 50.10%, while Fujimori dropped to 49.90%. Markets had not anticipated such a tight race between the two candidates, leaving investors on edge.

"The slower official count shows Fujimori in the lead. If the quick count is confirmed, a Sánchez victory would run counter to our baseline economic outlook," said Debora Reyna, economist at Oxford Economics.

"A potential Sánchez administration wouldn't hold a majority in Congress, forcing it to build consensus to pass reforms."

Lima stocks .MXNUAMPESCPGPE jumped 6.7% and were on track for the biggest intra-day gain since September 2020. The currency PEN= firmed.

In Mexico, the annual inflation rate decelerated for a second month in a row in May, official data showed, returning to the higher end of the central bank's target.

Mexico's stocks were up 1% and the peso MXN= appreciated 0.33%.

"The larger-than-expected fall in Mexican inflation, to 3.9% y/y in May, will be welcomed by Banxico and means that the policy rate is likely to remain at 6.50% in the foreseeable future," said Kimberley Sperrfechter, senior emerging markets economist at Capital Economics.

Brazil's Bovespa index .BVSP added 0.9% and the real BRL= gained 0.5%. Brazil's government plans to take action to curb the Middle East conflict's effect on fuel prices as long as it continues, Finance Minister Dario Durigan said.

Last month, the administration had renewed fuel tax exemptions and subsidies ahead of President Luiz Inacio Lula da Silva's reelection bid later this year.

Meanwhile, the Chilean .SPIPSA and Colombian .COLCAP benchmarks rose 2.6% and 1.6%, respectively.

The Chilean peso CLP= and Colombian peso COP= edged 0.8% and 0.3% higher, respectively.

Key Latin American stock indexes and currencies 1422 GMT:

Latin American market prices from Reuters
Equities	Latest	Daily % change
MSCI Emerging Markets .MSCIEF	1709.82	3.3
MSCI LatAm .MILA00000PUS	2897.94	1.61
Brazil Bovespa .BVSP	170102.7	0.85
Mexico IPC .MXX	66332.97	1.04
Chile IPSA .SPIPSA	10427.13	2.62
Argentina Merval .MERV	3176839.46	2.083
Colombia COLCAP .COLCAP	2228.65	1.63
Currencies	Latest	Daily % change
Brazil real BRL=	5.1683	0.49
Mexico peso MXN=	17.401	0.33
Chile peso CLP=	914.51	0.81
Colombia peso COP=	3579.65	0.26
Peru sol PEN=	3.4642	0.02
Argentina peso (interbank) ARS=RASL	1445.5	0.07
Argentina peso (parallel) ARSB=	1425	0.70