SAO PAULO, Oct 25 (Reuters) - The Mexican peso strengthened on Wednesday after the central bank stepped in to cushion the currency's recent decline, lifting it from six-month lows. The peso firmed 0.9 percent, making it the top gainer among currencies in the region and paring its losses this month to around 4 percent. Mexico's currency commission said on Wednesday it would increase the amount of dollars auctioned in foreign currency hedges following a period of market volatility. Strategists at BNP Paribas conjectured that the intervention was meant to curb price pressures stemming from a weaker peso, which could delay policymaker efforts to slow down inflation. Concerns over the future of Mexico's trade ties with the United States have hammered the peso in recent weeks as fears grew that U.S. President Donald Trump could make good on his threats to scrap the North American Free Trade Agreement (NAFTA). Brazilian markets seesawed on Wednesday, with the currency up 0.2 percent and stocks down by the same amount. Traders mostly avoided making big bets ahead of a widely-expected lower house vote on whether to put President Michel Temer on trial in the Supreme Court for corruption charges. Investors largely bet he will dodge the charges, but a smaller show of support could further delay his efforts to streamline the costly social security system, which are seen as critical to boosting long-term economic growth. Shares in retailer Lojas Renner SA and motor maker WEG SA rose, however, after posting their third-quarter earnings. Despite missing expectations for net income, a 15 percent annual increase in WEG's operating profits supported demand for the stock.
Key Latin American stock indexes and currencies at 1500 GMT:
Stock indexes daily % YTD % change change
MSCI Emerging Markets 1115.07 0.16 29.12 MSCI LatAm 2882.61 0 23.16 Brazil Bovespa 76164.29 -0.24 26.46 Mexico S&P/BVM IPC 49471.17 -1.37 8.39 Chile IPSA 5515.08 -0.38 32.85 Chile IGPA 27654.63 -0.34 33.38 Argentina MerVal 27710.39 -1.07 63.79 Colombia IGBC 10918.60 0.42 7.81 Venezuela IBC 683.83 2.99 -97.84 Currencies daily % YTD % change change
Brazil real 3.2405 0.19 0.27 Mexico peso 19.0605 0.89 8.83 Chile peso 629.56 0.40 6.53 Colombia peso 2983.97 -0.23 0.59 Peru sol 3.234 0.06 5.57 Argentina peso (interbank) 17.4200 0.46 -8.87 Argentina peso (parallel) 18.05 0.50 -6.81
(Reporting by Bruno Federowski; Editing by Paul Simao)