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EMERGING MARKETS-Peru stocks lead LatAm losses as tight presidential race rattles market
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EMERGING MARKETS-Peru stocks lead LatAm losses as tight presidential race rattles market
Jun 5, 2026 11:21 AM

* Latam stocks and FX headed for weekly losses

* US jobs data boosts dollar

* Peruvian sol, stocks slide as leftist Sanchez gains

traction

(Updates with afternoon levels)

By Avinash P and Ragini Mathur

June 5 (Reuters) - Peruvian stocks led losses across

Latin American markets on Friday as a tightening presidential

race unsettled investors already grappling with a stronger

dollar, robust U.S. jobs data and geopolitical uncertainty.

The Lima stock exchange's benchmark index

tumbled 3.4%, its worst one-day performance in about two months,

while the Peruvian sol slid 1.5% against the U.S. dollar,

marking its steepest drop in more than three months.

An Ipsos poll showed leftist Peru candidate Roberto Sanchez

gaining momentum ahead of Sunday's run-off against conservative

Keiko Fujimori, the daughter of former President Alberto

Fujimori.

Sanchez, who has recently softened his campaign rhetoric,

drew 43.8% support, narrowly ahead of Fujimori's 43.2%, leaving

the race in a statistical dead heat.

The close contest has heightened investor anxiety over

Peru's policy outlook, with markets weighing the potential

impact on business confidence, foreign investment and economic

management.

"The fall in Peruvian assets suggests deeper investor

concern over a never-ending change of the guard that looks like

an imbalance in administrative power," said Juan Perez, director

of trading at Monex.

"Fujimori carries quite a legacy, but she could be seen as

positive for the sol and other assets since she would fit in

with Trump and a current trend of turning center-right across

LatAm."

With pressure extending across the region, MSCI's Latin

American currencies index also fell 2.3%, while

its regional stocks gauge lost 1.7%. Both were

on track for weekly declines.

A stronger U.S. dollar weighed on emerging market

currencies after data showed U.S. employers added far more jobs

than expected in May, reinforcing expectations that the Federal

Reserve could raise interest rates later this year.

Sentiment was also dented by stalled Middle East peace

efforts. Iran reaffirmed support for its Lebanese ally Hezbollah

and demanded that Israel withdraw from southern Lebanon,

underscoring the obstacles to an interim deal aimed at easing

the broader U.S.-Iran conflict.

Brazil's real fell 1.5% to its weakest level in

nearly two months, while the Bovespa dropped 0.7%.

Investors were also assessing the U.S. designating Brazil's

largest criminal groups as Foreign Terrorist Organizations,

effective Friday, that could increase risks and costs for

companies operating in sectors where gangs have penetrated the

formal economy.

Chile's peso weakened 2.3% as copper prices slipped.

In Colombia, the COLCAP equities index fell 0.5%,

while the peso dropped 1%, though it remained on track

for a third straight week of gains. The currency could extend

its advance if opposition candidate Abelardo de la Espriella

wins the June 21 presidential run-off, according to a Reuters

poll.

Key Latin American stock indexes and currencies:

Stock indexes

Latest Daily % change

MSCI Emerging Markets 1711.47 -2.71

MSCI LatAm 2884.51 -2.3

Brazil Bovespa 169173.78 -0.68

Mexico IPC 66181.82 -1.8

Chile IPSA 10328.75 0.24

Argentina MerVal 3109464.12 -2.05

Colombia COLCAP 2217.26 -0.49

Currencies Latest Daily % change

Brazil real 5.1375 -1.45

Mexico peso 17.4717 -1.14

Chile peso 915 -2.27

Colombia peso 3599.64 -1.03

Peru sol 3.4505 -1.49

Argentina peso 1,441.5 -0.28

(interbank)

Argentina peso (parallel) 1,410.0 1.74

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