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Brazil c.bank decision due at 2130 GMT

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Argentina debt risk index drops after Trump win

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MSCI Latam stocks index up 0.2%, FX also climbs

(Updates prices throughout)

By Johann M Cherian

Nov 6 (Reuters) - Currencies and stocks across most

major Latin American economies edged higher in choppy trade on

Wednesday, though Mexico's peso and the main stock index stayed

under pressure after Donald Trump's victory in the U.S.

presidential election.

MSCI's index tracking currencies in the region

rose 0.9%, after touching a three-month low in

the session against a broadly stronger dollar. An index tracking

Latam bourses edged up 0.2%, reversing early

declines of about 1.9%.

Mexico's peso depreciated 0.8% to 20.25 per dollar,

after reaching 20.81, its weakest in more than 27 months. The

local IPC equities index dipped 0.3%, also coming off

one-year lows touched earlier.

Brokerage Citigroup ( C/PN ) said it has added a short position on

the peso versus the South African rand after the U.S. elections.

The currency had slid over 3% earlier in the day.

The currency is the worst performer among peers, losing

about 21% from its April highs as markets sold off the peso in

anticipation of a Trump presidency along with controversial

domestic judicial reforms.

Trump's campaign rhetoric included 200% tariffs on auto

exports from Mexico, mass deportations and U.S. military action

against drug cartels.

When asked if Trump's proposed tariffs on Mexico could

derail the recent 'near shoring' trend in Mexico, Jakob Ekholdt

Christensen, senior EM strategist at BankInvest said, "What

Trump wants to do is more on-shoring into the U.S. economy."

"But, there will be some reflection that it may not be

possible to shift it all to the U.S. and therefore the trade

relations with Mexico should be still promoted, but clearly

companies will be forced to think twice about whether to locate

production in Mexico or in the U.S."

Brazil's real edged 0.7% higher. Analysts expect the

country to enjoy more trade with China given that Beijing

replaced all its U.S. soybean imports with Brazilian ones when

trade tensions flared during Trump's first presidency.

Separately, the country's finance minister said the

government has concluded talks on new measures to strengthen the

fiscal framework, seen as crucial to improve the valuation of

the country's risk assets.

The local Bovespa index slid 0.6% ahead of a central

bank interest rate decision, with economists projecting a 50

basis points rate hike.

In Argentina, the yield on hard-currency bonds maturing in

2029 slipped to 17.78%, aiding the local MerVal

index's 3.6% surge.

A risk index which measures the premium investors

demand to hold local bonds versus equivalent U.S. debt dropped

to its lowest level in five years. The country's libertarian

President Javier Milei is seen as a political ally of Trump.

Currencies of copper producers Chile and Peru

lost 0.7% and 0.1%, respectively, tracking weak prices of the

red metal on prospects that major electrification initiatives

could be rolled back and consequently dampen demand.

Key Latin American stock indexes and currencies:

Latest Daily %

change

MSCI Emerging Markets 1129.77 -0.82

MSCI LatAm 2126.22 0.21

Brazil Bovespa 129845.86 -0.62

Mexico IPC 50659.15 -0.34

Chile IPSA 6519.78 -0.07

Argentina MerVal 2002302.81 3.677

Colombia COLCAP 1357.97 -0.12

Currencies Latest Daily %

change

Brazil real 5.7095 0.65

Mexico peso 20.2500 -0.76

Chile peso 962 -0.74

Colombia peso 4413.49 -0.23

Peru sol 3.777 -0.13

Argentina peso (interbank) 992.5000 0.05