EMERGING MARKETS-Brazil markets down after Temer charged with corruption

SAO PAULO, June 27 (Reuters) - Brazil's stocks and currency slipped on Tuesday after the country's top federal prosecutor charged President Michel Temer with taking multimillion-dollar bribes. In a document submitted to the Supreme Court, Rodrigo Janot said Temer "fooled Brazilian citizens" and owed the nation millions in compensation for accepting bribes. The lower house of Congress must now vote on whether to allow the tribunal to try the conservative leader. Traders expect Temer to garner the support of one-third of the lower house needed to block the trial, although some fear his backing may melt away if lawmakers are forced to vote several times to protect the unpopular president. The vote, which does not yet have a date, is likely to delay the implementation of Temer's planned reforms of the pension system and labor regulations, seen by investor as key to curb debt and lift long-term economic growth. The Brazilian real weakened 0.7 percent, while 5-year credit default swaps widened 2 basis points to 237 basis points. Brazil's benchmark Bovespa stock index fell 0.3 percent, dragged down by blue-chips such as lenders Itaú Unibanco Holding SA, Banco Bradesco SA and beer producer Ambev SA. Shares of Kroton Educacional SA and Estácio Participações SA ranked among the biggest decliners on lingering concerns that regulators may veto a tie-up between both college operators. Losses in the index were capped, however, by a rally in shares of miners and steelmakers, such as Vale SA and Cia Siderúrgica Nacional SA, boosted by soaring prices of metals. Other Latin American markets were mostly down as traders avoided risky bets ahead of a widely awaited speech by U.S. Federal Reserve Chair Janet Yellen later in the day. Investors will closely monitor her remarks for clues over future monetary policy after a recent batch of mixed economic figures suggested it may be forced to increase rates at a slower pace than expected. The Mexican peso slipped 0.7 percent after touching a 13-month peak on Monday, while the country's benchmark S&P/BVM IPC stock index was down 0.3 percent.

Key Latin American stock indexes and currencies at 1350 GMT:

Stock indexes daily % YTD % change change


MSCI Emerging Markets 1017.26 -0.18 18.19 MSCI LatAm 2514.87 -0.65 8.14 Brazil Bovespa 62031.26 -0.25 3.00 Mexico S&P/BVM IPC 49033.48 -0.27 7.43 Colombia IGBC 10651.23 0.21 5.17 Venezuela IBC 122470.40 0.22 286.28 Currencies daily % YTD % change change


Brazil real 3.3245 -0.71 -2.27 Mexico peso 17.9855 -0.67 15.34 Chile peso 661.5 -0.15 1.39 Colombia peso 3024.11 -0.25 -0.75 Argentina peso (interbank) 16.3150 0.03 -2.70 Argentina peso (parallel) 16.62 -0.36 1.20

(Reporting by Bruno Federowski; Editing by Nick Zieminski)