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EMERGING MARKETS-Mexico peso falls again amid uncertainty about NAFTA talks

MEXICO CITY, Oct 18 (Reuters) - The Mexican peso slipped on Wednesday, continuing its volatile gyrations as talks to modernize the North American Free Trade Agreement deteriorate. The Mexican peso has seesawed as investors puzzle over what the contentious talks mean for the nation's future, dipping 0.53 percent on Wednesday morning. On Tuesday, the United States, Canada and Mexico wrapped up the latest round of NAFTA renegotiations in Washington, D.C., trading barbs. "We decided to protect part of our profits on our short MXNCLP trade as we think the MXN leg could remain very volatile as the market continues to digest the results of the fourth round of NAFTA negotiations finalized yesterday," Nomura analysts Mario Castro, David Wagner and Benito Berber wrote in a note to investors. The losses came after the peso rose about 1.5 percent on Wednesday on news that trade ministers from the United States, Canada and Mexico would extend a deadline to finish talks. The jump marked the currency's biggest one-day gain in about 4-1/2 months. Before its rebound, the peso had shed close to 5 percent this month on concerns that talks to revamp the 23-year old North American Free Trade Agreement (NAFTA) could founder. U.S. President Donald Trump has repeatedly threatened to leave the pact, crying foul over the United States' trade deficit with Mexico. NAFTA is a critical pillar of the Mexican economy, which sends nearly 80 percent of its exports to the United States. Meanwhile, Brazil's benchmark Bovespa stock index was essentially flat, edging up 0.2 percent, as investors remained cautious amid a corruption scandal that has embroiled President Michael Temer and could doom his market-friendly reforms. Latin American stock indexes and currencies at 16:38 GMT:

Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1125.75 0.01 30.55 MSCI LatAm 2945.32 0.48 25.23 Brazil Bovespa 76350.77 0.2 26.77 Mexico IPC 50048.95 -0.18 9.65 Chile IPSA 5499.33 0.29 32.47 Chile IGPA 27562.43 0.29 32.93 Argentina MerVal 26134.06 -1.83 54.48 Colombia IGBC 11020.48 -0.09 8.81 Venezuela IBC 559.96 -0.32 -98.23 Currencies daily % YTD % change change

Latest

Brazil real 3.1717 -0.12 2.44 Mexico peso 18.8745 -0.53 9.90 Chile peso 626.6 -0.88 7.04 Colombia peso 2932.87 0.54 2.34 Peru sol 3.241 0.09 5.34 Argentina peso (interbank) 17.3300 0.03 -8.40 Argentina peso (parallel) 18.01 0.06 -6.61

(Reporting by Julia Love and Michael O'Boyle; Editing by Chizu Nomiyama)