(Updated at 10:38 a.m. ET/ 1438 GMT)

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Mexico's judicial reform to be debated on Tuesday

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Brazil c.bank sells $735 mln in extra FX swap auction

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Latam FX flat, stocks down 0.5%

By Shashwat Chauhan

Sept 2 (Reuters) - Brazil's real led losses amongst

Latin American peers on Monday despite the local central bank's

interventions to prop up the currency, while focus remained on a

plethora of global economic data this week including a crucial

U.S. jobs print.

Brazil's real slipped 0.7% against the dollar despite

the central bank selling all 14,700 swap contracts offered in an

additional auction, totaling $735 million.

The auction was announced late on Friday after two

interventions earlier that day that were unable to curb the

depreciation of the real.

Separately, Brazil's government forecast economic growth of

2.6% and inflation of 3.3% for 2025 in its draft budget proposal

for the coming year, which was submitted to Congress late on

Friday.

"The budget assumptions are not completely risk free ... we

doubt the proposals will lift market sentiment," economists at

Societe Generale said.

"It would likely require significant spending adjustments to

calm the market jitters."

Mexico's peso, the worst performing currency amongst

its Latin American peers so far this year, dipped 0.1% after

clocking a close to 6% decline for August.

The peso has come under pressure amid growing expectations

of softer monetary policy and on jitters around a controversial

judicial reform, which is slated to be debated in Mexico's Lower

House of Congress on Tuesday.

Peru's sol dipped 0.3% against the greenback, while

Colombia's peso was an outlier with an 0.7%.

Data over the weekend showed annual inflation in Peru slowed

to 2.03% in August.

The focus this week will be on trhe U.S. jobs report, due on

Friday, which could be key for investors to gauge the size of

potential rate cuts by the Federal Reserve this month.

MSCI's index for Latin American currencies

edged 0.1% lower, while a gauge for stocks was

down 0.5%.

Regional heavyweight Brazil's Bovespa stock index

slipped about 1%, while stocks in Colombia also eased

0.9%.

Meanwhile in Argentina, President Javier Milei vetoed a

pension reform that had been passed by Congress last month,

arguing that the measure would have an impact on public

accounts.

Later this week, interest rate decisions in Argentina,

Chile, Poland, Malaysia and Egypt are likely to be on investors'

radar.

Trading activity is expected to be light in the absence of

U.S. participants as markets there are shut for a public

holiday.

HIGHLIGHTS

** Brazil's economy expected to have grown at solid pace in

second quarter

** Colombia central bank reduces reserve requirements for

lenders

Key Latin American stock indexes and currencies:

Equities Latest Daily % change

MSCI Emerging Markets 1095.99 -0.36

MSCI LatAm 2228.36 -0.47

Brazil Bovespa 134496.71 -1.11

Mexico IPC 52285.24 0.58

Chile IPSA 6452.49 -0.12

Argentina Merval 1741156.8 1.374

6

Colombia COLCAP 1349.57 -0.93

Currencies Latest Daily % change

Brazil real 5.6484 -0.68

Mexico peso 19.738 -0.14

Chile peso 913.88 -0.12

Colombia peso 4158.5 0.67

Peru sol 3.7604 -0.33

Argentina peso (interbank) 950.5 0

Argentina peso (parallel) 1290 1.162790698