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Trump vows tariffs on chips, metals, other imports

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Chile's central bank decision awaited

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Brazil's federal tax revenue rises to a record high

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MSCI Latam FX up 0.8%, stocks advance 0.6%

(Updates to midsession trading)

By Purvi Agarwal, Lisa Pauline Mattackal and Johann M

Cherian

Jan 28 (Reuters) - Indexes tracking Latin American

currencies and stocks rose on Tuesday, as investors gauged the

impact of U.S. President Donald Trump's fresh tariff talks,

though Colombia's peso continued to fall after a last-minute

deal with the U.S.

In his latest speech on tariffs, Trump said he was planning

to impose tariffs on imported computer chips and some metal

imports, among others.

The Mexican peso, among the most vulnerable to U.S.

tariffs, was up 0.6% against the greenback in choppy trading as

investors await the Feb. 1 deadline when the U.S. is expected to

unveil tariffs on top trade partners.

The peso had weakened to its lowest level in almost a week

on Monday, after Trump's spat with Colombia dashed hopes of the

U.S. taking a softer stance on tariffs.

The Colombian peso depreciated 0.7%, while MSCI's

broader index tracking Latam currencies added

0.8%.

Colombian and Mexican 10-year bonds

declined for the second-straight day.

On the equities front, MSCI's stocks measure

rose 0.6%, with Colombia's COLCAP up 2.2%, while

Mexican equities dipped 0.1%.

When asked on how Latam economies can continue maintaining a

relationship with the U.S., Thea Jamison, managing director of

CHANGE Global Investment, said it is in everyone's interest to

maintain and enhance the intertwined business relationship with

Mexico, even as the country and Colombia get a handle on the

drug cartels in their respective economies.

With Brazil, "given that it's such a significant economy and

a source of agricultural natural resources, it is important to

manage that relationship."

Brazil's real firmed 0.4%. Data showed federal tax

revenue in Brazil rose 9.62% in real terms in 2024 to a record

2.65 trillion reais ($448.39 billion).

Meanwhile, the Chilean peso weakened 0.9% ahead of a

local interest rate decision, with investors widely expecting

the central bank to keep rates on hold.

The currency in the export-heavy economy has dipped 0.7% so

far this year, after 2024's drop of nearly 13%, pressured by

tariff threats, a hawkish tone adopted by the U.S. Federal

Reserve and domestic fiscal worries.

Trump's proposed tariffs on copper also weighed. Chile is

the world's largest copper producer.

Investors were also on edge ahead of the Fed's next policy

decision on Wednesday, followed by Brazil's. Higher U.S. rates

typically pressure demand for riskier emerging market assets.

Argentina's Merval index lost 0.4%, with investors

circumspect about the country's negotiations with the

International Monetary Fund over a new lending program.

Referring to the banking sector, Jamison said it "is

attractive because the penetration in terms of private credit to

(gross domestic product) is extremely low ... and they're just

starting to do some lending and it's a story for the years to

come."

Key Latin American stock indexes and currencies:

Key Latin American stock

indexes and currencies

Stock indexes Latest Daily % change

MSCI Emerging Markets 1087.11 -0.04

MSCI LatAm 1997.8 0.59

Brazil Bovespa 124180.74 -0.55

Mexico IPC 51668.19 -0.10

Chile IPSA 7035.01 0.09

Argentina MerVal 2429970.06 -0.37

Colombia COLCAP 1464.03 2.21

Currencies Latest Daily % change

Brazil real 5.8709 0.37

Mexico peso 20.534 0.63

Chile peso 994.5 -0.92

Colombia peso 4212.5 -0.67

Peru sol 3.734 0.24

Argentina peso 1,050.0 flat

(interbank)

Argentina peso (parallel) 1,210.0 1.63