EMERGING MARKETS-Brazil stocks, real weaken; Mexican peso leads losses

Nov 19 (Reuters) - The currencies of Brazil and Mexico weakened on Monday despite the dollar dropping to two-month lows, as concerns of a slowdown in global growth and simmering U.S.-Chinese trade tensions clouded sentiment. The U.S. Federal Reserve policymakers signaled rate increases ahead but also sounded more concerned about a potential global slowdown, leading markets to suspect the central bank's tightening cycle may not have much further to run. This sent U.S. Treasury yields and the dollar lower. Weakness in regional market came also as the United States kept up its tough rhetoric against China on the trade front, as U.S. Vice President Mike Pence said there would be no end to tariffs on $250 billion of Chinese goods until China changed its ways. The Mexican peso led declines among regional currencies, weakening 0.6 percent after a gain of 1.7 percent over three sessions on rate hike optimism. Bank Mexico raised rates to tame inflation and warned the incoming government that any more market denting policy moves may fan further rise in inflation. Brazil's real fell half a percent and stocks in Sao Paulo declined, after strong gains the previous session. On Friday, Brazilian investors cheered the choice of economist Roberto Campos Neto by President-elect Jair Bolsonaro to head the country's central bank. The Bovespa stock index shed nearly 1 percent with losses being broad based. Payment processor Cielo was the worst performer, down nearly 4 percent, after negative research action from HSBC and Credit Suisse. Credit Suisse downgraded the stock on weak profit expectations for 2019. State oil company Petrobras fell 0.2 percent. Economist Roberto Castello Branco agreed to be its chief executive. The incoming Bolsonaro administration has said it will overhaul top management of the company, which has been embroiled in a corruption scandal. The Chilean peso fell after data showed that the country's economy grew at the slowest pace this year amid a slowdown in the mining sector. Financial markets in Argentina and stock markets in Mexico were closed for local holidays.

Key Latin American stock indexes and currencies at 1303 GMT:

Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 990.04 0.38 -14.86 MSCI LatAm 2651.07 -0.59 -5.71 Brazil Bovespa 87736.36 -0.88 14.84 Chile IPSA 5198.37 0.14 0.14 Colombia IGBC - - - Currencies daily % YTD % change change

Latest

Brazil real 3.7533 -0.41 -11.72 Mexico peso 20.2319 -0.45 -2.63 Chile peso 671.7 -0.16 -8.49 Colombia peso 3169.75 -0.12 -5.92 Peru sol 3.374 0.00 -4.06

(Reporting by Susan Mathew in Bengaluru;)