*

LatAm stocks up 0.7%, FX up 0.4%

*

Mexico annual inflation decelerates in October

*

Chile's inflation cools sharply, returns to central bank's

target

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Chile's October copper exports up 13.5% at $4.99 billion

(Updates with afternoon trading)

By Nikhil Sharma and Sukriti Gupta

Nov 7 (Reuters) - Latin American assets were on track

for a strong weekly run, defying a global risk-averse trend, as

investors evaluated key monetary policy decisions and inflation

data from the region.

A broader gauge for LatAm equities was up

0.7% on Friday and 2.3% for the week so far. In contrast, Wall

Street equities were set for a dull weekly finish on concerns

about the economy and stretched valuations.

An index tracking regional currencies added

0.4%, taking weekly gains to 0.9% so far.

"From a bigger picture trend, what we're seeing is people

(are) noticing the carry trade in Latin America in combination

with improvements in political trends," said Malcolm Dorson,

head of emerging markets at Global X ETFs.

In Brazil, the real was up 0.7% for the week, set for

its fourth straight weekly gain, supported by the central bank's

decision to keep interest rates on hold and hawkish guidance of

more such pauses despite the government's calls to bring down

borrowing costs.

Sao Paulo's main stock index edged up 0.1%, set to

register its 13th straight session of gains. For the week, the

index was up 2.7%.

The IGP-DI price index, Brazil's key inflation metric,

showed price pressures fell marginally in October, marking a

smaller decline than market participants expected.

In Mexico, annual inflation decelerated in October but

remained within the central bank's target range of 3%, plus or

minus a percentage point.

The data followed the central bank's decision on Thursday to

lower borrowing costs for the fourth consecutive time to tame

sticky core inflation, while adopting a cautious tone on further

easing prospects.

"Unless the economy shows signs of improvement or the peso

comes under significant pressure, inflation risks are less

likely to materialize," analysts at Societe Generale said in a

note, adding that the bank could ease further, but the timing

may become more sporadic.

The Mexican peso added 0.6% and was up 0.4% for the

week. Its main stock index added 0.3% to take its weekly

gain to 0.9%.

The Colombian peso was among the top-performing

currencies for the week, up 2.6%, as it continued to benefit

from the central bank's decision last week to pause the key rate

at 9.25%, amid inflation-related uncertainties.

The bank revised upward its inflation predictions for this

year and for 2026 in its quarterly monetary policy report on

Wednesday. Colombia's main stock index has gained 4.3%

this week.

Focus was also on Chile's upcoming presidential election

just over a week away. The ruling leftist coalition's candidate,

Jeannette Jara, is seen leading polls over hard-right rivals

Jose Antonio Kast and Evelyn Matthei.

The local peso fell 0.4% after annual inflation

slowed in October to return to the central bank's target range,

igniting expectations for future cuts.

The Santiago stock index jumped 1.5% as separate

data showed a 13.5% annual increase in copper exports in

October. Red metal exports account for significant income for

the world's largest copper-producing nation.

In Argentina, the main stock index has fallen 4.6%

so far this week, after surging a record 44.5% in the previous

week, thanks to a decisive midterm election win for President

Javier Milei's party.

The local peso rose 2.4% on Friday.

Key Latin American stock indexes and currencies:

Equities Latest Daily %

change

MSCI Emerging Markets 1381.63 -0.87

MSCI LatAm 2632.63 0.69

Brazil Bovespa 153599.75 0.17

Mexico IPC 63305.8 0.34

Chile IPSA 9605.13 1.54

Argentina Merval 2857522.82 -3.9

Colombia COLCAP 2072 1.29

Currencies Latest Daily %

change

Brazil real 5.3371 0.24

Mexico peso 18.4677 0.59

Chile peso 945.02 -0.35

Colombia peso 3781.93 0.14

Peru sol 3.375 -0.04

Argentina peso (interbank) 1415 2.4

Argentina peso (parallel) 1395 -7.16