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Brazil's economic activity beats expectations in September

*

Argentina's risk index falls to lowest level since July

2019

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Colombia's Ecopetrol third-quarter profit slides 28%

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Banxico cuts rates by 25 bps

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MSCI Latam stocks index flat, FX up 0.4%

(Updated at 1450 ET)

By Johann M Cherian and Pranav Kashyap

Nov 14 (Reuters) - Most Latin American currencies ticked

up against the dollar on Thursday, with the Mexican peso leading

the charge as its central bank cut interest rates by 25 basis

points.

Mexico's peso inched up 0.41% in a volatile session

against the dollar. Banxico lowered borrowing costs by 25 basis

points to 10.25%.

Uncertainty over President-elect Donald Trump's policies on

trade, immigration and security following his Nov. 5 election

victory also prevailed, with the peso experiencing the steepest

declines among peers so far this year.

Separately, Mexican President Claudia Sheinbaum said her

government would in the coming days present a plan to protect

the country's non-genetically modified white corn under the

constitution.

"Markets have priced in too much weakness on the peso and

there could be a correction, but it doesn't change the outlook.

The fiscal outlook for Mexico is very challenging," said Wilson

Ferrarezi, an economist at TS Lombard.

Brazil's real edged up 0.3% against the dollar after

the latest data pointed to robust economic activity in the

region's largest economy, underscoring expectations for coming

rate hikes by the central bank.

Brazil has been affected to a lesser extent by the

appreciation of the U.S. dollar following Trump's election

victory, Brazil's central bank chief Roberto Campos Neto said.

Markets awaited any measures to stabilize public finances,

with Brazil's central bank chief saying the government must cut

spending to the bone, as per a report.

The real has weakened amid government hesitation to announce

a fiscal package to stem a rapid rise in mandatory spending.

"If they announce something that is seen as inadequate, then

markets will sell off. They need to get this right," said Jon

Harrison, managing director for EM macro strategy at TS Lombard.

Currencies of copper producers Chile and Peru

edged up 0.36% and 0.3% respectively, while Colombia's peso

was trading flat.

Traders also monitored an Asia Pacific Economic Cooperation

summit in Peru alongside a Group of 20 leading economies forum

in Brazil against the backdrop of Trump's recent win.

An index tracking top currencies in the region

edged 0.4% higher. Ratings agency S&P Global

said it expects any delay in Fed rate cuts to also slow the pace

of monetary easing across the region.

Further, private fixed investment in Mexico could soften

until there is more clarity on trade policies from the incoming

U.S. administration, it said. Mexico had benefited from U.S.

companies shifting some operations closer to home over the past

two years.

On the equities front, MSCI's equity index tracking regional

stocks was trading flat, while Brazil's Bovespa

index was up 0.17%.

Mexico's benchmark stocks index was down 0.4.

Colombia's Colcap index rose 1.1%, with

state-owned oil producer Ecopetrol rising 5.4% after

reporting third-quarter results.

Argentina's Merval index added 2.4%.

The JPMorgan risk benchmark, which shows the yield spread on

bonds versus comparable U.S. debt, reached its lowest level

since July 2019. Markets were optimistic about the policies of

Argentina President Javier Milei, who is also seen as a

political ally of Trump.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

Equities Latest Daily %

change

MSCI Emerging Markets 1084.69 -0.82

MSCI LatAm 2090.88 flat

Brazil Bovespa 127955.68 0.17

Mexico IPC 50543.82 -0.40

Chile IPSA 6478.97 -1.21

Argentina Merval 2092313.5 2.44

8

Colombia COLCAP 1352.76 1.12

Currencies Latest Daily %

change

Brazil real 5.78 0.30

Mexico peso 20.40 0.41

Chile peso 975.21 0.36

Colombia peso 4478.50 flat

Peru sol 3.80 0.30

Argentina peso (interbank) 998 flat

Argentina peso (parallel) 1120 flat