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LatAm stocks up 0.1%, currencies flat

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Argentinian, Brazilian equities add over 1% each

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Argentina central bank to adjust FX band monthly

(Updates with afternoon trading, analyst comment)

By Niket Nishant and Twesha Dikshit

Dec 15 (Reuters) - Chilean assets took a breather, with

investors booking profits following last week's sharp rally in

the lead-up to the presidential run-off, while Brazil and

Argentina led regional equites gains.

The stocks benchmark in Chile lost almost 1% on

Monday after gaining 1.7% last week while the peso

weakened 0.6% against the greenback.

The pullback suggests markets may have priced in much of the

good news, leaving Chilean assets sensitive to how post-election

reforms and fiscal plans unfold after Jose Antonio Kast's

victory.

"Historically, Chile has had very strong credit overall with

a strong and long track record of fiscal prudence and economic

management of high quality, but the last administration put a

little bit of a question mark around all of that. So now our

expectation is that we will return to this traditional market

perception," said Petar Atanasov, co-head of sovereign research

& strategy at Gramercy.

The MSCI index that tracks overall Latin American equities

added 0.1% while a gauge of regional currencies

was little changed.

DIVERGENCE ACROSS REGIONAL ASSETS

Brazilian stocks added 1% and were on track for a

fourth straight day of gains.

The IBC-Br economic activity index, a proxy for gross

domestic product, fell more than expected in October.

Any weakness could boost the case for interest rate cuts by

the central bank after it held rates for a fourth consecutive

meeting last week and stuck to its hawkish stance.

Argentina's MerVal index gained 1.2% while the peso

firmed 0.2% against the dollar. A Reuters poll of

analysts showed expectations that the economy grew 3.5%

year-on-year in the third quarter of 2025, rebounding from a

1.9% contraction a year earlier.

Separately, the Argentinian central bank said it would adjust

the foreign exchange rate band on a monthly basis based on the

latest inflation reading under a new monetary framework.

The Mexican peso was up 0.2% against the dollar.

Private sector analysts polled by Mexico's central bank expect

the currency to close the year stronger than their previous

estimate.

"Mexico is well-positioned for a modest rebound in 2026,

with low effective tariff rates and potential for further

central bank easing," Vanguard analysts wrote in a note.

The country also opened an anti-dumping and anti-subsidy

investigation into U.S. pork leg and shoulder imports after

domestic producers alleged unfair pricing. Stocks down

0.4%.

Colombia's benchmark index dipped 0.7% while the

peso fell 0.4%.

Key Latin American stock indexes and currencies at 20:02

GMT:

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1373.91 -1.16

MSCI LatAm 2739.86 0.19

Brazil Bovespa 162378.5 1

Mexico IPC 64327.12 -0.59

Chile IPSA 10302.23 -0.94

Argentina MerVal 3014679.58 1.2

Colombia COLCAP 2094.4 -0.68

Currencies Latest Daily % change

Brazil real 5.4225 -0.07

Mexico peso 17.9841 0.12

Chile peso 915.2 -0.57

Colombia peso 3819.68 -0.43

Peru sol 3.3679 -0.06

Argentina peso 1,438.0 0.21

(interbank)

Argentina peso (parallel) 1,460.0 -1.04