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Latam FX, stocks up 0.3% each

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Brazilian consumer confidence rises in May from April

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Brazil posts smaller-than-expected April current account

deficit

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Mexico central bank minutes due on day

(Updates with mid-session prices)

By Nikhil Sharma and Purvi Agarwal

May 26 (Reuters) - Latin American assets strengthened on

Monday after U.S. President Donald Trump announced that he would

postpone the deadline for threatened tariffs on the European

Union, calming some revived trade war jitters.

MSCI's gauge for the region's equities rose

0.3%, while an index for currencies rebounded

0.3%.

The currencies index had dipped 0.3% in the prior session

after Trump took aim at the European Union, saying trade

negotiations with the region had become too sluggish.

On Sunday, he pushed the deadline for tariffs to July 9 from

June 1, after European Commission President Ursula von der Leyen

said the 27-nation bloc needed more time to produce a deal.

"In Latam, we are taking all these announcements with a

pinch of salt. ... The situation can change dramatically from

one day to another, so remaining cautious at the moment," said

Andres Abadia, chief Latam economist at Pantheon Macroeconomics.

Most Latam currencies were little changed against the dollar

in thin trading, with markets in the U.S. closed for a public

holiday.

Currencies in Mexico, Peru and Colombia

were flat against the greenback.

"Trade discussions and policy shifts continue to

influence the USD and U.S., both of which will constrain equity

markets," said Bob Savage, head of markets macro strategy at

BNY.

Minutes of the Bank of Mexico's last interest rate

meeting are due to be released later in the day.

Brazil's real dipped 0.4% against the dollar. Brazil

recorded a smaller-than-expected current account deficit in

April, but also posted a narrower trade surplus.

Separately, data showed Brazilian consumers displayed some

optimism in May, with the Consumer Confidence Index (ICC) rising

by 1.9 points to 86.7 points.

This week will see crucial data releases for Latin America's

largest economy, including gross domestic product figures for

the first quarter.

A poll conducted by Brazil's central bank showed economists

hiking their forecast for 2025 GDP growth to 2.14%, up from the

2.02% forecast in the previous week, amid indications from

policymakers that monetary policy needed to be more restrictive

amid persistent inflationary pressures and global uncertainties.

Sao Paulo's stock index was up 0.3%, while Chile's

main index reversed early gains to dip 0.2%.

Chile's peso gained 0.1%, boosted by higher copper

prices. The country is the world's largest copper producer.

Argentina's peso shed 0.9% after two sessions

of gains, while its stock index was 1.1% higher.

Latin America's broader currency index has risen 13.4% this

year, with the parallel stock index soaring about 22%.

Trepidation over economic growth, unpredictable trade

policies and fiscal risks, especially with Trump's spending and

tax-cut bill, have revived the "Sell America" narrative, with

investors cutting their exposure to U.S. assets.

The trend has put the spotlight on emerging markets, where

investors are aiming to build a more geographically diversified

portfolio.

J.P. Morgan upgraded its rating on emerging market equities

to "overweight" from "neutral" last week.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

MSCI Emerging Markets 1169.17 -0.15

MSCI LatAm 2254.38 0.26

Brazil Bovespa 138185.82 0.26

Mexico IPC 58309.64 -0.17

Chile IPSA 8382.99 -0.2

Argentina Merval 2370661.6 1.06

9

Colombia COLCAP 1653.66 -0.06

Brazil real 5.6698 -0.42

Mexico peso 19.2303 -0.03

Chile peso 938.37 0.14

Colombia peso 4146.59 -0.05

Peru sol 3.657 -0.03

Argentina peso (interbank) 1143 -0.87

Argentina peso (parallel) 1150 1.74