*

All eyes on Nvidia's ( NVDA ) earnings after Wednesday market close

*

Colombia's fiscal deficit to be below-target 6.7% of GDP

in 2025

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Argentina logs $800 mln trade surplus in October

(Updates with afternoon trading)

By Nikhil Sharma and Sukriti Gupta

Nov 19 (Reuters) - Most Latin American stocks and

currencies declined on Wednesday following losses in prior

sessions, as investors looked ahead to Nvidia's ( NVDA ) high-stakes

quarterly results, which could define the direction for AI

markets.

MSCI's index of Latin American equities

edged down 0.2%, set for its third consecutive session of

losses, while a broader index for regional currencies

edged up 0.1%.

The overall mood stayed cautious ahead of AI giant Nvidia's ( NVDA )

results after Wednesday's closing bell, amid mounting questions

about lofty AI-related valuations and ambitious sector spending

that have put downward pressure on global markets in recent

days.

Nvidia ( NVDA ) is also subject to a relatively higher bar for

earnings expectations, as even a mild underperformance could

trigger high volatility. The stock rose 3% in early trading.

"Long term, there is going to be dollar weakening. At the

moment, everybody's kind of looking for some sort of relief and

saying, oh, okay, NVIDIA ( NVDA ) is doing well, but if (it's) not doing

well, that is going to translate into a poor U.S. dollar, and

that's going to create a better situation for emerging market

currencies," said Juan Perez, director of trading at Monex.

Separately, investors also awaited the release of Thursday's

delayed U.S. jobs report, which could influence the Fed's

monetary policy decision next month.

In Latin America, Colombia's COLCAP Index fell

0.7% and the peso added 0.4%.

The country's fiscal deficit will total 6.7% of gross

domestic product this year, below a 7.1% target, the fiscal

committee said, citing lower spending amid debt management

operations.

Both the Colombian peso and the stocks have outperformed

their peers this year, having gained 15.8% and 49.1%

year-to-date, respectively. A similar performance was also seen

in the Brazilian real and its main stock index,

up 13.7% and near 30% YTD, respectively.

The outperformance of Brazil and Colombia reflects higher

interest rates, which are attracting carry trades and offsetting

concerns about global trade and local fiscal challenges.

According to analysts at Societe Generale, the rally,

however, may face challenges from a series of general elections

lined up in Brazil, Colombia and Mexico next year, noting that

"the outlook for fiscal and monetary policy-and, by extension,

Latam assets-is closely tied to election outcomes in Brazil and

Colombia, and to a lesser extent in Chile."

On the day, the Brazilian real fell 0.3% while the main

stock index lost 0.8%.

Elsewhere in LatAm, the Mexican peso fell 0.1%, while

the benchmark S&P/BMV IPC index declined 0.3%, on track

to log a fifth consecutive session of declines.

A United Nations report showed that trade between Latin

America and the Caribbean will likely grow in 2025 despite broad

U.S. tariffs across the region, with Mexican shipments expected

to see a 5% increase.

In Chile, the Santiago stock index hit a record

high and was last up 0.7%, while the local peso was flat.

The moves mark the resumption of a rally in the Andean

nation's markets earlier this week after investors favoured a

victory for far-right candidate Jose Antonio Kast in the

December presidential runoff following Sunday's first round,

boosting optimism that a right-wing government could deliver

more market-friendly reforms.

In Argentina, the local peso lost 0.6%, while the

benchmark stock index declined 1.9%. Data showed

Argentina posted a trade surplus of $800 million in October,

after registering $7.95 billion in exports and $7.15 billion in

imports in the month.

Key Latin American stock indexes and currencies:

Equities Latest Daily %

change

MSCI Emerging Markets 1359.5 -0.17

MSCI LatAm 2636.65 -0.21

Brazil Bovespa 155213.92 -0.84

Mexico IPC 61844.76 -0.23

Chile IPSA 9873.59 0.65

Argentina Merval 2877186.17 -1.892

Colombia COLCAP 2058.05 -0.64

Currencies Latest Daily %

change

Brazil real 5.3397 -0.34

Mexico peso 18.3581 -0.1

Chile peso 931.37 0.02

Colombia peso 3707.5 0.37

Peru sol 3.379 -0.36

Argentina peso (interbank) 1406 -0.6

Argentina peso (parallel) 1410 -8.15