(Updated at 1512 GMT)

*

Copper prices weigh on currencies of Chile and Peru

*

Poll suggests Brazil's economy will grow at steady pace

*

Mexican economy grows 1.6% on an annual basis in May

*

Latam stocks up 0.1%, FX off 0.1%

By Johann M Cherian

July 22 (Reuters) - Brazil and Mexico's currencies led

gains in Latin America on Monday, rebounding from the previous

week's sell-off, as investors assessed the implications of U.S.

President Joe Biden's decision not to seek re-election.

Brazil's real appreciated 1%, after logging its

steepest weekly loss since November 2022 on Friday. A poll

showed the region's biggest economy will continue growing at a

steady pace over the medium term thanks to a continuous rise in

public spending that is set to keep fiscal deficits

uncomfortably high.

Mexico's peso recovered 0.9% after notching its

biggest weekly drop since early June in the previous session.

Data showed the region's second-largest economy grew 1.6% in May

on an annual basis, compared with a revised 5.3% growth seen the

month before.

Global shares also nudged higher after Biden's decision to

bow out of the election race and endorse Vice President Kamala

Harris injected a degree of optimism into the markets.

Biden's rival, Republican candidate Donald Trump is seen as

a negative for Latin American economies, most of which are led

by left-leaning governments. Mexico is considered to be

particularly exposed, given the former U.S. President's policies

on trade, immigration and security.

On Friday, MSCI's index tracking Latin American currencies

logged its biggest weekly drop since early June

after an assassination attempt on Trump boosted expectations

that he might win a second term at the White House.

"Over the last week, people were just too excited pricing

what they called the 'Trump trade' and now people are reacting

to the news of Biden stepping down from the race and Kamala

taking over," said Eduardo Ordonez Bueso, an emerging markets

debt portfolio manager at BankInvest.

Meanwhile, currencies of copper producers Chile and

Peru slipped 0.1% and 0.2% respectively as prices of the

red metal slipped.

Attention will also be on a Group of 20 Finance Ministers

and Central Bank Governors meeting in Brazil later in the week.

On the equities front, an index tracking regional bourses

was subdued, while Brazil's Bovespa

edged up 0.2%

Markets were on the cusp of corporate earnings season in

Brazil, with the release of reports from Carrefour

due after the closing bell, while those from Santander

and Vale were also on tap.

Mexico's main index climbed 0.4%, while Colombia's

Colcap dipped 0.1%.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1085.53 -0.37

MSCI LatAm 2261.47 0.15

Brazil Bovespa 128022.43 0.32

Mexico IPC 53892.65 0.4

Chile IPSA 6576.57 0.27

Argentina MerVal 1575425.11 0.408

Colombia COLCAP 1365.82 -0.14

Currencies Latest Daily %

change

Brazil real 5.5559 0.86

Mexico peso 17.8880 0.82

Chile peso 950.9 -0.42

Colombia peso 4001.52 0.87

Peru sol 3.7368 0.00

Argentina peso 926.0000 -0.11

(interbank)

Argentina peso 1420 1.76

(parallel)