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Brazil's Haddad backs limiting spending

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Mexican lower house passes judicial reform legislation

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IMF sees Mexico economic growth slowing in 2024, 2025

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Peru economy grows more than expected in August on mining

boost

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Latam FX down 1.2%, stocks off 1.4%

(Updated at 2000 GMT)

By Shashwat Chauhan and Johann M Cherian

Oct 15 (Reuters) - Most currencies of resources-rich

Latin America depreciated over 1% on Tuesday as prices of

commodities such as oil and copper remained under pressure over

an uncertain demand outlook, with Mexico's peso the worst hit.

Local media reported that China may raise an additional 6

trillion yuan ($850 billion) from special treasury bonds over

three years to stimulate a sagging economy, a figure that failed

to revive sentiment.

Top copper producer Chile's peso weakened 1.6% to a

one-month low, as prices of copper sank to a three-week low amid

the confusion over the scale of the stimulus in China.

Investors also priced in an interest rate cut of 25

basis points by the local central bank due later in the week.

Number two copper producer Peru's sol dipped 0.1% in

low volumes.

On the data front, the local economy grew more than expected

in August compared to the same month last year, boosted by

recovery in the key mining sector.

Brazil's real weakened 1.2% to hit a one-month low.

Brazil's Finance Minister Fernando Haddad said in an interview

that financial markets were right to be worried about the

country's fiscal situation, but pledged to work to improve it,

including by limiting spending.

"In Brazil, they have set out for themselves very

unrealistic growth in revenue projections for 2024 and failed to

meet them, and you have a situation where debt to GDP is high,"

said Thierry Wizman, Global FX & Rates Strategist at Macquarie.

Meanwhile, crude producer Colombia's peso lost

1.1%, tracking a more than 3% slide in crude prices after a

report suggested Israel would not strike Iranian oil targets,

easing fears of a supply disruption.

Mexico's peso lost 1.7% and touched a two week

low as worries around

constitutional reforms

dominated the mood along with weak crude prices. Mexican

officials urged safety and stability in private investment in

the country, following a bilateral summit with business leaders.

The International Monetary Fund (IMF) said it sees Mexico's

economic growth slowing to around 1.5% this year, citing

capacity constraints and tight monetary policy.

A broader gauge of Latin American currencies

slid 1.2% to hit a one-month low, while an index for stocks

eased 1.4%.

Regional heavyweight Brazil's Bovespa benchmark

slipped 0.1%, with mining and energy firms at the helm of

losses.

Meanwhile in Argentina, the country's risk fell 40 units to

hit 1,068 basis points, hitting its lowest level since a major

debt restructuring in September 2020.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

MSCI Emerging Markets 1148.68 -0.98

MSCI LatAm 2180.15 -1.44

Brazil Bovespa 130825.35 -0.14

Mexico IPC 52286.13 0.55

Chile IPSA 6558.98 -0.2

Argentina Merval 1818700.2 0.792

7

Colombia COLCAP 1326.92 0.03

Brazil real 5.6595 -1.19

Mexico peso 19.6971 -1.73

Chile peso 942.4 -1.62

Colombia peso 4245.53 -1.11

Peru sol 3.764 -0.16

Argentina peso 979 0.15

(interbank)

Argentina peso (parallel) 1215 -2.06