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LatAm stocks down 0.9%, FX flat

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Brazil's retail sales miss forecast in September

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Chile's central bank saw holding rate as the only option, minutes show

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Peru's interest rate decision later in the day

(Updates with afternoon trading)

By Nikhil Sharma and Sukriti Gupta

Nov 13 (Reuters) -

Latin American assets reversed early gains and fell on Thursday, tracking downbeat global

markets as investors shifted focus to upcoming U.S. economic data after the nation's longest

government shutdown ended.

MSCI's index for Latin American equities fell 0.9% after a 0.8% drop in the

previous session.

An equivalent gauge for currencies was little changed after hitting an

all-time high earlier in the day.

The dollar index slipped 0.4% on expectations of higher volatility from a backlog of

data that had clouded the Federal Reserve's interest-rate outlook.

"You have had a bit more of a consistent risk-off session. It started with some

resilience in general. Also, a sell-off in treasuries with some steepening, and then that has

exacerbated throughout the U.S. session...so at some point a bit of the contagion has reached

Latam," said Alejandro Cuadrado, global head of FX and LatAm strategy at BBVA.

Major U.S. stock indexes fell as investors scaled back expectations for interest-rate

cuts on inflation worries and divisions among central bankers over the U.S. economy's health.

Late on Wednesday, U.S. President Donald Trump

signed legislation

ending the shutdown, allowing federal agencies to resume collecting data crucial to

policymaking.

Peruvian markets braced for a policy decision at 1800 ET, with broad expectations the

central bank will keep the rate at 4.25%.

In Brazil, the real eased 0.1% and the main stock index lost 0.6%.

The real has gained 14.3% this year, helped by near two-decade highs in interest rates,

though high borrowing costs have weighed on growth, as shown by data pointing to an unexpected

September retail sales decline from August.

Most Latin American assets have outperformed in 2025, outpacing Wall Street as investors

increase exposure to emerging markets for better returns.

A study said major emerging economies, including Brazil and Mexico, can weather U.S.

tariffs with limited damage, citing Mexico's policy and infrastructure resilience and Brazil's

expanding trade ties.

Mexico's local equity index fell 0.3%, while the currency slipped 0.2%.

Chile's peso inched up 0.1% and the main equity index fell 1.9%. The

country's central bank said the unanimous decision to keep the benchmark interest rate on hold

at 4.75% was the "only plausible option" at its October meeting, the minutes showed.

In Argentina, the local peso edged up 0.1% and the benchmark stock index

fell 4.2%.

Elsewhere, the South African rand rose 0.3% to near a three-year high after the

previous day's budget review, which the government said lowered the inflation target to 3%, the

first such change in 25 years.

The Johannesburg Stock Exchange's Top-40 index rose 1.2% to a record high on

speculation S&P Global Ratings may upgrade South Africa's sovereign rating at its review on

Friday.

Key Latin American stock indexes and currencies:

MSCI Emerging Markets 1408.5 0.05

MSCI LatAm 2671.64 -0.96

Brazil Bovespa 156737.69 -0.57

Mexico IPC 62995.67 -0.31

Chile IPSA 9710.38 -1.85

Argentina Merval 2860398.45 -4.16

Colombia COLCAP 2066.67 -0.67

Brazil real 5.2973 -0.09

Mexico peso 18.3179 -0.18

Chile peso 928.05 0.12

Colombia peso 3745.5 -1.11

Peru sol 3.373 -0.16

Argentina peso (interbank) 1406 0.1

Argentina peso (parallel) 1415 -8.48