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EMERGING MARKETS-Brazil stocks seesaw after best quarter in 8 years

SAO PAULO, Oct 2 (Reuters) - Brazilian stocks seesawed on Monday after posting their best quarter in eight years, as investors awaited further hints over President Michel Temer's efforts to pass market-friendly reforms. The benchmark Bovespa stock index slipped as much as 0.6 percent in early afternoon trading after rising 18 percent in the third quarter. Temer's plan to streamline the social security system, a key measure for bringing Brazil's budget deficit under control, has been delayed by a political crisis sparked by corruption allegations against him. The lower house of Congress, which has the authority to decide whether a president should be put on trial, is expected to vote on the new charges in mid-October. "Investors will monitor whether the government will be able to block the charges and, also, at what cost," analysts at Lerosa Investimentos brokerage wrote in a client note. The Brazilian real seesawed on trader caution. The Mexican peso firmed 0.10 percent after posting its worst week in the year. Demand for emerging market currencies waivered in recent weeks after the U.S. Federal Reserve hinted that it may raise interest rates in December, potentially draining funds from high-yielding assets. That contradicted those who expected the U.S. central bank to hold off on tightening policy until it saw clear signs that inflation was heading to its 2 percent goal.

Key Latin American stock indexes and currencies at 1720 GMT:

Stock indexes daily % YTD % change change

Latest

MSCI Emerging Markets 1082.30 0.05 25.45 MSCI LatAm 2917.74 0.04 24.61 Brazil Bovespa 74268.33 -0.03 23.31 Mexico S&P/BVM IPC 50529.07 0.36 10.71 Chile IPSA 5357.92 0.3 29.06 Chile IGPA 26771.58 0.33 29.12 Argentina MerVal 26179.85 0.39 54.75 Colombia IGBC 11075.56 -0.19 9.35 Venezuela IBC 510668.6 4.32 1510.68

2

Currencies daily % YTD % change change

Latest

Brazil real 3.1575 0.30 2.90 Mexico peso 18.2320 0.10 13.78 Chile peso 638 0.09 5.13 Colombia peso 2947.81 -0.51 1.82 Peru sol 3.27 -0.15 4.40 Argentina peso (interbank) 17.3950 -0.37 -8.74 Argentina peso (parallel) 17.9 0.06 -6.03

(Reporting by Bruno Federowski; Editing by Dan Grebler)