*

Chile's economy grows less than expected in Q1

*

Brazil court orders Novonor to pay Braskem ( BAK ) compensation

*

Mexican economy up 1.7% y/y in April, preliminary estimate

shows

*

Latam stocks flat, FX adds 0.2%

(Updated at 1900 GMT)

By Shashwat Chauhan and Johann M Cherian

May 20 (Reuters) -

Currencies of copper producing nations led gains in

resources-rich Latin America on Monday, while investors parsed

economic growth data out of Chile ahead of an interest rate

decision by the local central bank later in the week.

As of 1900 GMT, MSCI's gauge for currencies

added 0.2% against the U.S. dollar, while the index tracking

Latin American stocks was flat.

Peru's sol climbed 0.3% to 3.72 against the dollar,

tracking a jump in copper prices that hit record highs as a

recent rally triggered by short covering created momentum for

speculators and funds to bet on higher prices of the metal used

in the power and construction industries.

Chile's peso, the currency of the world's biggest

producer of copper, also edged up 0.4% to levels seen over four

months ago, ahead of an interest rate decision on Wednesday,

where economists polled by Reuters expect benchmark interest

rates reduced by 50 basis points to 6%.

Separately, data showed Chile's economy expanded 1.9% in

the first quarter of 2024 from the previous three months,

slightly below forecasts for 2.0% growth.

"Chile's economy will continue to do well this year,

supported by high copper prices, lower inflation and looser

monetary policy," said Kimberley Sperrfechter, Latin America

economist at Capital Economics.

Chile's peso has strengthened over 8.2% month-to-date,

on course for its biggest monthly jump since July 2020 as signs

of policy support from top metals consumer China brightened

demand prospects for the red metal.

Mexico's peso ticked up 0.3%. A

preliminary estimate showed

the region's second largest economy grew 1.7% in April

compared with the same month a year earlier.

Yield on the oil exporter's benchmark sovereign bond

ticked up to 9.62.

Colombia's peso edged up 0.4%, while Brazil's real

underperformed the broader region. A weekly central bank

poll showed private sector economists expected benchmark

interest rate to end 2024 at 10%, up from a media estimate of

9.75% a week prior.

Among individual bourses, Brazil's main index

slipped 0.2%, weighed by utilities.

Braskem ( BAK ) surged 3.6% after a Brazilian court

ordered conglomerate Novonor

to pay compensation

for "abuse of controlling power," the petrochemical company

said.

Mexico's main index slipped 0.4%, while Argentina's

MerVal index added nearly 2%.

Elsewhere, the Dominican Republic's hugely popular

President Luis Abinader vowed unity and impartial leadership as

he soared to victory in elections

on Sunday with a sufficiently wide margin to clinch a

second term without a second-round vote.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1101.29 0.14

MSCI LatAm 2499.93 -0.02

Brazil Bovespa 127825.69 -0.25

Mexico IPC 57366.01 -0.38

Chile IPSA 6706.95 0.72

Argentina MerVal 1502658.24 1.981

Colombia COLCAP 1435.72 0.46

Currencies Latest Daily %

change

Brazil real 5.1086 -0.16

Mexico peso 16.5660 0.14

Chile peso 887.3 0.44

Colombia peso 3817.2 0.28

Peru sol 3.7394 -0.28

Argentina peso 888.5000 -0.17

(interbank)

Argentina peso 1160 -3.45

(parallel)