EMERGING MARKETS-Mexico peso slips to nearly 1-month low on NAFTA jitters

MEXICO CITY, Aug 7(Reuters) - Mexico's peso slipped to a nearly one-month low against the dollar on Monday as the impending start of talks to renegotiate the North American Free Trade Agreement gave the market a renewed bout of jitters. The peso sank to a record low in January on fears that U.S. President Donald Trump would rip up NAFTA, but it has rallied as his administration has taken a more conciliatory tone and moved to renegotiate the 23-year-old accord. However, market participants are again taking a more cautious tone as Canada, Mexico and the United States are due to start talks in Washington on Aug. 16 to revamp NAFTA, which underpins some $1 trillion in annual trilateral trade. The peso fell as much as 0.47 percent on Monday to 17.9910 to the dollar, its weakest intraday level since July 11. "Over the next two weeks, the main risk for the peso will be the comments related to the NAFTA renegotiation," said Banco BASE analyst Gabriela Siller. "If the initial talks between Mexico and the United States seem cooperative, the peso could gain ground towards the end of the month." In Brazil, the benchmark Bovespa stock index rose 1.03 percent, breaking above 67,500 points, as mining and steel shares gained. Still, market observers remained vigilant about ongoing investigations targeting Brazilian President Michel Temer, who is trying to push through overhauls of the nation's pension and tax laws to close a gaping budget deficit and get an economic recovery back on track. Key Latin American stock indexes and currencies at 1636 GMT:

Stock indexes daily % YTD % change change


MSCI Emerging Markets 1074.36 0.67 23.77 MSCI LatAm 2792.59 0.51 18.71 Brazil Bovespa 67647.72 1.12 12.32 Mexico S&P/BVM IPC 51411.20 0.16 12.64 Chile IPSA 5107.97 0.03 23.04 Chile IGPA 25480.89 0 22.89 Argentina MerVal 21722.67 0.09 28.40 Venezuela IBC 195693.89 10.9 517.23 Currencies daily % YTD % change change


Brazil real 3.1257 -0.03 3.95 Mexico peso 17.9510 -0.25 15.56 Chile peso 650.4 0.03 3.12 Peru sol 3.243 0.06 5.27 Argentina peso (interbank) 17.7250 -0.28 -10.44 Argentina peso (parallel) 18.18 -0.17 -7.48

(Reporting by Miguel Gutierrez; Writing by Anthony Esposito; Editing by Lisa Von Ahn)