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Trump exempts some autos from tariffs for one month

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Chile's at over four-month high

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Latam stocks set to snap eight session losing run

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Latam FX, stocks indexes jump over 2% each

(Updates with mid-session trading)

By Shashwat Chauhan and Purvi Agarwal

March 5 (Reuters) - Latin American markets soared on

Wednesday, with Mexico's peso regaining more of its

tariff-driven losses as investors hoped for some relief from

U.S. tariffs, while a weaker dollar also provided a lift.

In the latest move, U.S. President

Donald Trump

said he would

exempt automakers

from the tariffs on Mexico and Canada, for one month until

they comply with the terms of an existing free trade agreement,

and that he would be open to more exemptions.

The currency in Mexico, a part of supply chains

for automakers, bounced back from one-month lows, and was last

up 1.1%. Stocks in the country were 0.5% higher.

"There's relief and optimism to some degree, mainly

because there's this chance that the tariffs might not go fully

as in theory with the U.S. maybe considering some exemptions,"

said Quasar Elizundia, research strategist at Pepperstone,

comparing the situation to the one-month reprieve given in early

February.

Trump also held talks with Prime Minister Justin Trudeau

amid hopes the two countries would reach

middle ground

, as suggested by U.S. Commerce Secretary Howard Lutnick's

comments on Tuesday.

Global markets found some footing after the

materialization of Trump's 25% tariffs on imports from Canada

and Mexico, and a doubling of duties on Chinese goods rattled

markets on Tuesday.

Mexican President Claudia Sheinbaum said she is tentatively

set to have a phone call with Trump on Thursday. Mexico is set

to lay down its retaliatory plans by Sunday, while Canada and

China have already announced tit-for-tat tactics.

Elizundia said that Mexico was in a wait and see mode,

and would proceed with countermeasures based on what actually

takes place.

The dollar index slipped 1.2%, to its lowest level

since early November, in its third consecutive session of

losses.

The Brazilian real gained 2.3%, set for its best day

since October 2022 as markets reopened following a public

holiday.

Chile's peso appreciated 1.7% to trade at over

four-month highs, supported by an uptick in copper prices, after

the biggest commodities consumer China set out an ambitious

economic growth target, Germany's infrastructure fund plans and

a weaker dollar.

MSCI's gauge for Latin American currencies

ticked 2.3% higher, set for its best day in over two and a half

years.

The stocks index added 2.7%, on track to

snap an eight-session losing streak, with regional indexes

logging robust gains.

Global markets will also track U.S. job data due on Friday

as concern mounts over the economy's health.

Elsewhere in emerging markets, Ukraine's international bonds

recovered from steep losses earlier this week after Trump said

Ukraine was ready to negotiate over the war with Russia, and

that the U.S. was reconsidering funding for Ukraine.

HIGHLIGHTS

** Chile's SQM reports 41% drop in profit on lower lithium

prices

** Profits for Colombia's Ecopetrol slide 22% in 2024

** Trump hails 'reclaiming' of Panama Canal after

BlackRock-led group's deal to buy stake

** Mexico's Sheinbaum popularity may insulate her from

tariff devastation

Key Latin American stock indexes and currencies:

MSCI Emerging Markets 1116.84 2.18

MSCI LatAm 2017.02 2.66

Brazil Bovespa 123191.27 0.32

Mexico IPC 52645.74 0.5

Chile IPSA 7333.1 0.26

Argentina Merval 2286858.6 3.68

9

Colombia COLCAP 1597.78 2.13

Brazil real 5.7517 2.27

Mexico peso 20.3517 1.14

Chile peso 927.88 1.69

Colombia peso 4113.5 0.64

Peru sol 3.65 0.49

Argentina peso (interbank) 1063.5 0.09

Argentina peso (parallel) 1205 2.07