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EMERGING MARKETS-Venezuela bonds dip ahead of controversial assembly vote

(Recasts with Venezuela bonds, updates prices) SAO PAULO/MEXICO CITY, July 28 (Reuters) - Venezuelan sovereign bonds due in 2022 fell to their lowest level in over a year on Friday, ahead of a weekend election in which voters will elect members of a controversial new legislative super-body championed by President Nicolas Maduro. The Sunday vote, which critics fear will add to Venezuela's slide into dictatorship, is being closely watched by Venezuelan debt-holders. The August 2022 bonds dropped more than 2 percent on Friday, while Venezuela's currency weakened past 10,000 bolivars per U.S. dollar. The bolivar is down more than 99 percent against the dollar since Maduro came to power in 2013. The constituent assembly election has been broadly condemned governance in Venezuela, which is also struggling under a crippling economic crisis. On Friday, Venezuelan opposition sympathizers began blocking streets as part of a mobilization against the 545-member assembly, which will have the power to rewrite the constitution and dissolve state institutions. Maduro says the body will help calm months of street protests. The Brazilian real firmed 0.68 percent after data showing lackluster wage gains in the United States, reducing bets on another U.S. rate hike this year. The currency has struggled to extend recent gains after a four-week rally drove it to its strongest level in two months. In Mexico, the peso weakened slightly. "The Mexican peso continues to depreciate as investors lose confidence that the rally can continue further, as NAFTA negotiations draw closer," said Gabriela Siller, a strategist at Banco BASE. Still, the International Monetary Fund on Friday said the peso is undervalued between 5 percent and 15 percent in a scenario where protectionist risks don't materialize.

Latin American stock indexes and currencies at 2043 GMT:

Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1063.09 -0.55 23.97 MSCI LatAm 2746.13 0.38 16.89 Brazil Bovespa 65428.58 0.23 8.64 Mexico S&P/BMV IPC 51246.35 -0.02 12.28 Chile IPSA 5073.00 0.47 22.20 Chile IGPA 25338.60 0.41 22.21 Argentina MerVal 21684.07 1.83 28.17 Colombia IGBC 10980.97 0.16 8.42 Venezuela IBC 135796.31 0.9 328.31 Currencies daily % YTD % change change

Latest

Brazil real 3.1340 0.68 3.68 Mexico peso 17.7700 -0.25 16.74 Chile peso 653.8 -0.70 2.58 Colombia peso 2999.84 0.37 0.06 Peru sol 3.245 0.00 5.21 Argentina peso 17.7975 -0.83 -10.80

(interbank)

Argentina peso 18.38 0.22 -8.49

(parallel)

(Reporting by Bruno Federowski; editing by Grant McCool and Tom Brown)