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LatAm stocks up 0.3%, FX down 0.3%

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Peru keeps key rate unchanged at 4.25%

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Chile braces for presidential election on Sunday

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S&P to review Senegal's credit rating later in the day

(Updates with afternoon trading)

By Nikhil Sharma and Sukriti Gupta

Nov 14 (Reuters) -

Latin American stocks rebounded on Friday after earlier losses, while currencies were mixed

as attention shifted to a closely watched presidential vote in Chile this weekend.

MSCI's index for Latin American equities nudged up 0.3%. It had fallen

earlier in the session, echoing sour global market sentiment as hawkish commentary from U.S.

policymakers dampened expectations of an imminent interest rate cut.

An increasing number of Fed policymakers have expressed reluctance to ease rates further,

citing persistent price pressures and a firm labor market after two U.S. rate cuts earlier this

year.

In the U.S., technology stocks that had faced renewed selling pressure and weighed on

markets earlier on Friday later recovered.

In Latin America, the main equity index was up 1.9% for the week and on track for a fifth

straight weekly rise.

"Broadly speaking, investors continue to appreciate Latin America based on valuations, a

strong carry trade and the political pendulum swinging back to the center," said Malcolm Dorson,

head of emerging markets at Global X ETFs.

An equivalent gauge for regional currencies lost 0.3% on Friday but was on

track for its best week since early August, helped by softness in the U.S. dollar throughout the

week.

Latin American investors head into a pivotal weekend with Chile's presidential election on

Sunday, a close contest pitting the ruling leftist coalition against a range of right-wing

candidates at a time when crime and immigration are top of mind for voter

The ruling coalition's candidate, Jeannette Jara of the Communist Party, is leading in the

polls but is short of the majority needed to avoid a runoff on December 14, where far-right

contender Jose Antonio Kast and other right-wing candidates are favored defeat Jara.

"The election of Kast in Chile will be the third important crossover to a pro-growth and

pro-U.S. government in Latin America, a reversal of the left-wing wave that prevailed during

2015-2022," Thierry Wizman, global FX and rates strategist at Macquarie Group, said in a note.

Chile's peso added 0.3% and was headed for an overall weekly rise, while the main

equity index lost 1.1% and was little changed for the week.

In Peru, the central bank on Thursday held its benchmark rate at 4.25% for the second

straight meeting, in line with analysts' expectations, noting that most economic indicators

improved last month.

In Brazil, the real was flat and the main stock index rose 0.6%; both are on

pace for their fifth-straight weekly gains.

Data showed inflation in Latin America's biggest economy, as measured by the IGP-10 price

index, rose 0.18% in November, compared to a 0.08% gain in October.

In Argentina, the local peso was set for its third straight weekly rise, while

the benchmark stock index was up 4.7% week-to-date. The U.S. said on Thursday it will

remove tariffs on some foods and other imports from the country under a framework agreement.

Elsewhere, Senegal braced for a key credit rating decision from S&P Global later on Friday

after days of investor concerns about the country's impending debt crunch and the lack of

progress on a new loan program with the International Monetary Fund.

The country's international bonds experienced a record selloff this week, forcing

authorities to reassure investors that it would pay back its debts and continue talks with the

IMF.

Key Latin American stock indexes and currencies:

MSCI Emerging Markets 1389.54 -1.44

MSCI LatAm 2686.87 0.28

Brazil Bovespa 158134.77 0.62

Mexico IPC 62775.28 0.39

Chile IPSA 9603.02 -1.11

Argentina Merval 2999831.29 4.04

Colombia COLCAP 2071.35 0.96

Brazil real 5.2968 0.02

Mexico peso 18.3013 0.01

Chile peso 925.34 0.32

Colombia peso 3755.5 -0.11

Peru sol 3.3623 0.32

Argentina peso (interbank) 1403 0.2

Argentina peso (parallel) 1410 -8.15