EMERGING MARKETS-LatAm currencies down on Fed jitters

(Updates prices) SAO PAULO, Oct 26 (Reuters) - Latin American currencies weakened on Thursday on bets that U.S. President Donald Trump would nominate a more hawkish policymaker to replace Janet Yellen as head of the Federal Reserve. However, losses were limited by the European Central Bank's decision to extend monetary stimulus, albeit at a slower pace. Politico on Thursday reported that Trump's search for the next chair of the Fed has come down to Fed Governor Jerome Powell and Stanford University economist John Taylor. Both are seen as more hawkish than Yellen. The report fanned expectations that U.S. interest rates could rise faster than expected next year, potentially hampering demand for high-yielding assets from emerging markets. Still, that could be partially offset by the ECB's extended stimulus. The bank will cut its bond buys in half to 30 billion euros ($34.92 billion) a month from January, taking comfort in an economic recovery now in its fifth year. But, concerned by stubbornly low inflation, the ECB twinned the cut with a nine-month extension of the program, opting to buy fewer bonds but for a longer period to reassure investors it would provide accommodation for a long time. Currencies from Brazil, Mexico, Chile and Colombia slipped between 0.2 percent and 0.09 percent. The Mexican peso lost 0.87 percent after the U.S. House of Representatives approved a budget resolution, opening the door for deep tax cuts that could affect Mexican businesses.

The Brazilian real shed 0.38 percent after President Michel Temer dodged corruption charges in a lower house vote on Wednesday evening, but with a smaller show of support from lawmakers than a similar vote earlier this year. The vote could delay his efforts to pass a pension reform that is seen as critical to boosting long-term growth in the country and curbing government debt.

Key Latin American stock indexes and currencies at 1500 GMT:

Stock indexes Latest Daily pct YTD pct change change MSCI Emerging Markets 1,105.74 -0.75 29.2 MSCI LatAm 2,834.27 -1.7 23.19 Brazil Bovespa 75,899.74 -1.01 26.02 Mexico IPC 48,993.96 0.24 7.34 Chile IPSA 5,516.45 0.39 32.88 Chile IGPA 27,657.71 0.33 33.39 Argentina MerVal 27,880.54 0.01 64.80 Colombia IGBC 11,036.77 0.73 8.97 Venezuela IBC 716.89 0.85 -97.74 Currencies Latest Daily pct YTD pct change change Brazil real 3.2965 -0.38 -1.43 Mexico peso 19.2120 -0.87 7.97 Chile peso 633.8 -0.79 5.82 Colombia peso 3,015.01 -0.58 -0.45 Peru sol 3.24 -0.19 5.37 Argentina peso 17.6500 -0.88 -10.06


Argentina peso 8.03 0.39 -6.71


($1 = 0.8591 euros)

(Reporting by Bruno Federowski and Julia Love; editing by Diane Craft)