*

LatAm stocks down 0.2%, FX down 0.1%

*

Chile's economy contracts 0.1% in third quarter

*

Colombia's economy grows beyond expectations in third

quarter

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Hungary central bank leaves rates unchanged

(Updates with afternoon trading)

By Nikhil Sharma and Sukriti Gupta

Nov 18 (Reuters) - Latin American stocks declined, while

currencies were mixed on Tuesday amid global market concerns

over an overvalued tech sector and diminishing prospects of an

imminent interest rate cut from the U.S. Federal Reserve.

MSCI's index of Latin American equities

edged down 0.2%, while a broader index for LatAm FX

was down 0.1%.

As attention turned to AI darling Nvidia's ( NVDA ) earnings

on Wednesday, investors began to question the towering

valuations of tech and AI stocks, as well as the ambitious

spending pouring into the sector.

"Nvidia ( NVDA ) results are not just any earnings report; they are

treated like a macro event... How it performs will have an

impact on the U.S. and global financial markets. Also, if its

stock price falters, then it could threaten the entire AI

trade," Kathleen Brooks, research director at XTB, said in a

note.

Additionally, the release of delayed U.S. data will also be

a key market-moving event, especially Thursday's pivotal jobs

report, which could influence the Fed's monetary policy decision

next month.

In LatAm, Chilean equities remained in focus after outsized

gains in the previous session, following Sunday's presidential

vote, which pointed to a potential victory for far-right

candidate Jose Antonio Kast in next month's runoff and boosted

investor optimism that a right-wing government could pave the

way for more market-friendly reforms.

The Santiago stock index, which soared 3.1% on

Monday, pulled back by falling 1%. The currency peso

declined 1% after gaining for five consecutive sessions.

Caution emerged after the economy contracted in the third

quarter from the previous three-month period, as lower copper

extraction affected the mining sector.

In Brazil, the currency real added 0.2%, while the

main stock index edged down 0.1%. The country's central

bank effectively halted operations of mid-sized lender Banco

Master, which had struggled in recent months with mounting

liquidity pressures.

The move also suspended a deal involving a consortium led by

investment group Fictor and investors to buy Master.

Colombia's COLCAP Index fell 0.1%, while the peso

gained 1%. Data showed Colombia's economy grew 3.6%

year-on-year in the third quarter, beating market expectations

of 3.05% in a Reuters poll last week.

The Mexican peso rose 0.5%, while the benchmark

S&P/BMV IPC index was little changed for the day.

In Argentina, the local peso dropped 0.9%, while

the benchmark stock index added 0.2%.

Argentina maintained its trade surplus in October, a Reuters

poll showed, although the surplus is seen falling for the second

straight month.

Overall, 2025 painted a bright picture for emerging

economies, with Latin America among the biggest beneficiaries so

far, as the region's higher interest rates attracted strong

inflows and soaring commodity prices bolstered its

resource-dominated markets.

A standout was Brazil's Bovespa stock index, which has risen

30% this year, outpacing Wall Street's S&P 500's 13.2% gain and

withstanding U.S. President Donald Trump's tariff actions. The

year also belonged to Colombia, whose stocks skyrocketed over

50% this year.

But a BofA survey also warned the EMs remain highly

susceptible to any risk-off move in the last quarter of 2025,

citing their unprecedented rally and fading hopes for a December

Fed rate cut.

In Central-Eastern Europe, Hungary's central bank left its

base rate steady at the European Union's joint-highest 6.5% on

Tuesday amid fiscal loosening and an uncertain inflation outlook

after next year's parliamentary election.

Key Latin American stock indexes and currencies:

Equities Latest Daily %

change

MSCI Emerging Markets 1364.29 -1.7

MSCI LatAm 2659.64 -0.22

Brazil Bovespa 156907.03 -0.05

Mexico IPC 62336.95 0.01

Chile IPSA 9809.37 -0.96

Argentina Merval 2926867.16 0.2

Colombia COLCAP 2068.39 -0.14

Currencies Latest Daily %

change

Brazil real 5.3173 0.22

Mexico peso 18.3328 0.47

Chile peso 931.5 -0.95

Colombia peso 3718 0.99

Peru sol 3.3705 -0.31

Argentina peso (interbank) 1397 -0.87

Argentina peso (parallel) 1410 -8.15