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Latam stocks down 1.5%, FX off 0.6%

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Mexican peso hits over three-week low

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Brazil real set for first weekly loss in four

(Updates with late afternoon trading)

By Shashwat Chauhan and Lisa Pauline Mattackal

March 28 (Reuters) - Most Latin American currencies and

stocks lost ground on Friday and were headed to their biggest

weekly losses since last month, as risk sentiment remained weak

after U.S. President Donald Trump's latest volley of tariffs.

MSCI's index tracking the region's currencies

dropped 0.6%. The Latin American equity index

dipped 1.5%, on track for a near 2% drop for the

week.

Both the stocks and currency index were at two-week lows.

Risk sentiment remained shaky through the week after Trump

imposed a 25% tariff on imported cars and light trucks starting

on April 3.

Adding another layer of uncertainty to global trade, U.S.

data showed underlying price pressures increasing by the most in

13 months in February, likely keeping the Federal Reserve

cautious on rate cuts.

The focus is now on U.S. reciprocal tariffs due to be

announced on Wednesday. Trump, however, indicated that the

measures may not be the like-for-like levies he has been vowing

to impose.

Latin American stocks and currencies remain set for solid

monthly gains, aided by a global rotation out of U.S. equities

and a broadly softer greenback.

Broader indexes tracking global emerging market stocks

and currencies are also on track for

monthly gains.

"Markets are still pricing somewhat benign commentary or

tariffs," said Joan Enric Domene, chief LatAm economist at

Oxford Economics.

"Given some time, some concessions, some room for hope that

there is still a deal (on tariffs) to be made, we can still see

that over-performance of some assets in the EM world," Domene

said.

Mexico's peso, among the region's most

tariff-sensitive currencies, fell 0.6% to an over three-week

low. Data showed the country's seasonally adjusted unemployment

rate was 2.7% in February.

Brazil's real weakened 0.3%, down for a third

straight day and on pace to snap a three-week winning streak.

Data showed unemployment in Latin America's biggest economy

rose in the quarter through February, matching expectations from

economists polled by Reuters. Meanwhile, federal public debt

rose 3.3%.

Chile's peso dropped 1.8% as copper prices fell ahead

of next week's tariff deadline. The CEO of Codelco, the world's

largest copper producer, said it had been redirecting some of

its spot sales to the U.S.

Brazil's Bovespa dropped 0.7%. The Argentinian

benchmark slid 1.4%, leading losses among regional

indexes.

The International Monetary Fund confirmed that the program

it is discussing with Argentina was requested to be for $20

billion, as announced by the Argentine government, and that it

would be an Extended Fund Facility.

HIGHLIGHTS

** Chile copper miner Codelco swings to profit in 2024

** Ukraine says mineral deal not final; summary shows US demands

more income

** Mexico announces second-quarter auctions for government debt

Key Latin American stock indexes and currencies:

Equities Latest Daily %

change

MSCI Emerging Markets 1120.06 -0.93

MSCI LatAm 2086.26 -1.50

Brazil Bovespa 132156.6 -0.75

Mexico IPC 53149.82 -0.61

Chile IPSA 7694.49 0.53

Argentina Merval 2378324.4 -1.4

Colombia COLCAP 1603.63 0.17

Currencies Latest Daily %

change

Brazil real 5.7589 -0.24

Mexico peso 20.4175 -0.59

Chile peso 950.5 -1.84

Colombia peso 4197.5 -0.58

Peru sol 3.657 -0.49

Argentina peso (interbank) 1070.5 0.1401214

39

Argentina peso (parallel) 1280 1.5625