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EMERGING MARKETS-Latam currencies weaken, Brazil shares come off record high

weak German data hurting the euro, though the greenback

(Recasts throughout, updates prices) BENGALURU, Jan 15 (Reuters) - Latin American currencies weakened on Tuesday, with the Mexican peso retreating from near three month highs, while stocks were pressured by Brazil shares easing off record highs as investors took profits. The currencies fell against the dollar, which was supported trimmed some gains after British lawmakers defeated Prime Minister Theresa May's Brexit deal by a crushing margin.

"Today the total focus will be on the Brexit vote by the British parliament," said analysts at brokerage ModalMais in Brazil who had said there was a "great possibility of it being rejected." Brazil's real led losses among regional currencies, down 0.5 percent, while the Mexican peso weakened, but cuts most of its losses after the dollar rally lost some steam post the Brexit vote. Argentina's peso declined 0.37 percent, with data showing 2018 inflation rate quickened to 47.6 percent, a 27-year high. "With a more stable ARS and the bulk of the pass-through from last year's ARS sell-off behind us, we expect inflation to continue to normalize going forward," analysts at Citigroup said in a note to clients. Losses in the Colombian and Chilean pesos were capped by a rise in prices of main exports of the two Andean countries - oil and copper, respectively. Among stocks, Brazil's Bovespa index fell 0.4 percent after having hit an all-time high last session. "There is nothing new, so many take the opportunity to realize some profits," said a variable income head at an investment bank brokerage in Sao Paulo. The index has been touching new highs in recent sessions and is on course to log its fourth straight week of gains, thanks to optimism from policy reform expectations by the new government. Argentine shares reversed gains from earlier in the day to close lower, extending losses to a third straight session. Bourses in Mexico and Chile eked out gains, in line with a rise in Wall Street. Outside Latin America, most emerging market stocks ended Tuesday higher, boosted by signals of more stimulus by China's government to support its cooling economy.

Key Latin American stock indexes and currencies at 2120 GMT:

Stock indexes Latest Daily

pct change

MSCI Emerging Markets 1,005.11 1.25MSCI LatAm 2,827.08 -0.23Brazil Bovespa 94,055.72 -0.44Mexico IPC 43,655.22 0.59Chile IPSA 5,373.92 0.31Argentina MerVal 33,562.54 -0.62Colombia IGBC 11,663.04 0.06Currencies Latest Daily

pct change

Brazil real 3.7167 0.22Mexico peso 19.0030 -0.15Chile peso 675 -0.27Colombia peso 3,139.28 -0.05Peru sol 3.333 0.30Argentina peso 37.1000 -0.27


(Additional reporting by Claudia Violante and Paula Arend Laier in Sao Paulo;)