EMERGING MARKETS-LatAm assets mixed as investors track Iran tensions, Fed rate bets

The MSCI Latin American stocks index inched 0.1% lower, while the currencies equivalent edged 0.1% higher.

Equities in Brazil, the region's largest economy, declined 0.3%. A Reuters report said that Brazil is bracing for 25% tariffs from the U.S. after months of largely unproductive negotiations, with an announcement expected later in the day.

Meanwhile, a poll showed President Luiz Inacio Lula da Silva widening his lead over right-wing Senator Flavio Bolsonaro ahead of October's presidential election.

Bolsonaro's popularity dwindled after a report linked him to a disgraced banker and his stepmother resigned from the women's wing of his party, shaking investor expectations of reforms in the country that has been reeling from deteriorating public finances and high interest rates under Lula.

The Brazilian real edged 0.1% lower. The country's services activity fell 0.4% in May on a seasonally adjusted basis, missing economists' expectations of a 0.1% increase.