(Updated at 1505 GMT)

*

Argentina signs off on $21.66 billion in fiscal liquidity

bills

*

Mexico's Arca Continental Q2 core profit ticks up

*

China reaffirms policy goals, offers no implementation

details

*

Latam stocks down 1.7%, FX off 1.2%

By Johann M Cherian

July 18 (Reuters) - Chile's peso led losses across

resources-rich Latin America on Thursday, tracking a decline in

prices of base metals and crude oil, while underlying

macroeconomic issues and uncertainty around U.S. elections also

loomed.

World's biggest copper producer Chile's peso

depreciated 1.6% to hit a one-week low, as prices of the red

metal neared three-month lows without new stimulus from a key

political meeting in China and investors switching from copper

to gold to bet on earlier interest rate cuts by the U.S. Federal

Reserve.

Brazil's real weakened 1.1% to a two-week low, as

prices of iron ore, the country's top export, extended previous

session's losses.

Pesos of Mexico and Colombia also slipped 1.1%

and 0.6%, respectively, as crude prices declined.

A broader gauge for regional currencies also

dropped 1.2% to over a one-week low, against a firmer dollar.

Most currencies in the region are heading for weekly losses

between 1% and 3% as traders reacted to a possible second term

for U.S. Presidential candidate Donald Trump, who's policies on

trade, security and immigration are seen as negative for Latin

American economies, most of which are led by left-leaning

governments.

Further, excessive fiscal spending in economies like Brazil

and Colombia and uncertainty on the pace of interest rate cuts

have weighed on risk taking.

"It is going to be an extremely complicated second-half of

the year for central banks and some of them will have to tread

carefully (on interest rate decisions)," Andres Abadia, chief

Latam economist at Pantheon Macroeconomics said.

"The political situation in the U.S. is also volatile and

that obviously means that central banks in the region will have

to be careful in terms of monetary policy".

Meanwhile, MSCI's index tracking regional bourses

weakened 1.6%, to a one-week low, with Brazil's

Bovespa falling nearly 1%.

Mexico's main stock index edged up 0.1%. Arca

Continental declined nearly 1% despite the bottler

posting upbeat second-quarter core profit, bolstered by positive

volume performance.

Elsewhere, Chinese bond yields across the board

and the yuan were

broadly flat after leaders reiterated their wide-ranging

economic policy goals without detailing implementation steps.

Analysts said that the plenum outcome pointed to continuity,

rather than any shifts in policymaking or the economic growth

model China pursues.

Yields on Argentine dollar bonds

slipped between 13 and 26 basis

points. The local government gave the green light to issue up to

20 trillion pesos ($21.66 billion) in a one-year fiscal

liquidity bill, its latest move to mop up excess peso trading.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1106.11 -0.48

MSCI LatAm 2267.49 -1.76

Brazil Bovespa 128350.59 -0.85

Mexico IPC 53784.14 0.07

Chile IPSA 6599.34 0.47

Argentina MerVal 1533793.30 0.61

Colombia COLCAP 1365.39 -0.06

Currencies Latest Daily %

change

Brazil real 5.5445 -1.09

Mexico peso 17.8550 -0.91

Chile peso 940.2 -1.57

Colombia peso 4039.65 -1.18

Peru sol 3.7317 -0.56

Argentina peso 923.0000 0.05

(interbank)

Argentina peso 1440 1.04

(parallel)