SAO PAULO, Jan 11 (Reuters) - The Mexican peso fell on Thursday by the most in nearly three weeks, extending a slide after reports the United States could pull out of the North American Free Trade Agreement (NAFTA). Reuters reported late on Wednesday that Canadian officials are increasingly convinced U.S. President Donald Trump will leave the accord - a severe setback for Mexico's economy, which depends on exports to the United States. One possible U.S. tactic would be the presentation of a formal withdrawal letter as a means of creating leverage, given that it would likely take six months for the exit to take effect. However, Mexican officials told Reuters early on Thursday that if Trump triggered the withdrawal process then Mexico would break off NAFTA negotiations, which are scheduled to resume in January. The peso fell 0.63 percent in morning trading to 19.41 pesos to the dollar. Among major equities markets, Brazil's Bovespa index led gains in midday trading, thanks in part to solid inflows of foreign capital from investors looking to buy into a nascent consumer recovery in Latin America's largest economy. "With signs of good international liquidity remaining, Brazil can still be attractive to new resources from foreign investors," brokerage Magliano wrote in a note. The index had gained 0.35 percent by midday. Among the biggest winners on the Bovespa was private education company Estácio Participações SA, which rose 2.55 percent to 37.72 reais after analysts reiterated an outperform rating and raised the target price to 43 reais. Estácio rival Kroton Educacional SA was the biggest loser on the index, slipping 2.49 percent to 17.99 reais.
Key Latin American stock indexes and currencies at 1427 GMT:
Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1196,10 -0,12 3,37 MSCI LatAm 2932,05 0,23 3,43 Brazil Bovespa 78472,79 0,35 2,71 Mexico IPC 0,00 0 -100,00 Chile IPSA 5691,15 0,23 2,27 Chile IGPA 28631,47 0,21 2,33 Argentina MerVal 31640,72 0,03 5,24 Colombia IGBC 11809,77 0 3,86 Venezuela IBC 1342,67 1,15 6,30 Currencies daily % YTD % change change
Brazil real 3,2316 -0,13 2,53 Mexico peso 19,4050 -0,63 1,52 Chile peso 608,5 -0,02 1,01 Colombia peso 2870,27 0,55 3,89 Peru sol 3,219 0,09 0,56 Argentina peso (interbank) 18,6500 -0,11 -0,27 Argentina peso (parallel) 19,28 0,21 -0,26
(Reporting by Gram Slattery; Editing by Andrew Hay)