*

LatAm stocks down 0.7%, FX down 0.1%

*

Brazil's services activity grows 0.6% in September

*

South Africa's inflation target lowered to 3% in mid-term

budget

*

Argentina's annual inflation falls in October to lowest

since

mid-2018

(Updates with afternoon trading)

By Nikhil Sharma and Sukriti Gupta

Nov 12 (Reuters) - Latin American stocks and currencies

were mixed on Wednesday, as investors took a breather after

several days of gains fueled by progress toward ending the

historic U.S. government shutdown.

MSCI's index for Latin American equities was

down 0.7%, after climbing 2.2% in the prior session, while a

parallel gauge for currencies slipped about 0.1%

and is set to snap a five-day winning streak.

Members of the House of Representatives headed back to

Washington on Tuesday, after a 53-day break, for a vote due on

Wednesday evening that could restore federal government funding

and bring the longest U.S. shutdown in history to a close.

"There is a big chunk of Latin America that is not in a very

solid situation with the U.S. So now that this U.S. government

shutdown goes away, the focus is on Latin American problems...

Overall, when you look at the fundamentals, there's nothing

really indicating (that) we should feel enthusiastic about the

Latin American economy," said Juan Perez, director of trading at

Monex.

Equities around the globe maintained their upward momentum,

with MSCI's broadest index of Asia-Pacific shares outside Japan

rising 0.4% on Wednesday.

In Latin America, Brazil's main Bovespa index fell

0.4% after 15 straight days of gains, a run last seen in May

1994. The index is up about 31% for the year, outpacing a 16.6%

rise in Wall Street's S&P 500 index and highlighting investors

hunt for emerging markets offering lower valuations and higher

yields.

The Brazilian currency real was up 14.2%

year-to-date, with near two-decade-high borrowing costs making

it an attractive currency for carry trades.

Broader emerging markets showed similar outperformance, UBS

Global Research said, but it expects slower returns in 2026 as

U.S. rate cuts are largely priced in and the dollar is unlikely

to spark another major rotation into emerging economies.

The real was down about 0.4% for the day, dragged by lower

oil prices. Data showed services activity in Brazil grew more

than expected in September on a year-on-year basis.

The Chilean peso rose 0.5% and the Santiago stock

index jumped 1.9% to a record high, thanks to higher

copper prices. Investors braced for the first round of

presidential elections later in the weekend, with polls

indicating a lead for Communist Party's Jeannette Jara in a

close contest.

Chile's central bank board on Tuesday unanimously maintained

the countercyclical capital buffer at 0.5% of risk-weighted

assets, citing global financial risks.

In Argentina, local peso was down 0.2%, while the

benchmark stock index rose 0.9%. Data showed Argentina's

annual inflation rate fell for the 18th straight month in

October, as the monthly rate was a tick above market

expectations.

In other EM territories, the South African rand

strengthened 0.4% after the finance minister announced a lower

inflation target in the mid-year budget review. The country's

international bonds advanced, with the 2046 maturity

gaining 1.2 cents on the dollar.

Romania's central bank held its benchmark rate at 6.50% as

expected, warning inflation will not reach the target until the

first quarter of 2027, later than earlier projections.

Key Latin American stock indexes and currencies:

Equities Latest Daily %

change

MSCI Emerging Markets 1407.13 0.32

MSCI LatAm 2698.72 -0.74

Brazil Bovespa 157185.29 -0.36

Mexico IPC 63468.15 -1.33

Chile IPSA 9893.86 1.88

Argentina Merval 2984681.73 0.88

Colombia COLCAP 2068.69 -0.63

Currencies Latest Daily %

change

Brazil real 5.2918 -0.38

Mexico peso 18.3006 0.11

Chile peso 929.4 0.47

Colombia peso 3708 0.63

Peru sol 3.3676 -0.08

Argentina peso (interbank) 1408 -0.2

Argentina peso (parallel) 1415 -8.48