EMERGING MARKETS-Latam stocks, FX mostly dip; Mexican peso firms

(Recasts; updates prices, adds quotes) Feb 7 (Reuters) - Most Latin American stocks fell on Thursday as fears about slowing global growth weighed, and while Latin America currencies broadly softened against the dollar, the implicit hawkishness perceived in an outlook from Mexico's central bank supported the peso. Equities across the region joined their global peers in falling as investors moved to safe havens after U.S. President Donald Trump said he did not plan to meet with Chinese President Xi Jinping before an early March deadline set by the two countries to achieve a trade deal. MSCI's index of Latin American stocks fell 0.8 percent, while its index of Latin American currencies dropped 0.4 percent. Alessandro Faganello, a trader with Advanced Corretora in Brazil, said markets were adjusting from the strong run they have had until recently. Mexican stocks fell 0.5 percent, with cement giant Cemex tumbling 6.5 percent to lead losses on the index after a surprise fourth-quarter loss surprised investors.

Mexico's peso ticked up 0.1 percent. While the central bank matched expectations in leaving its key rate unchanged, its outlook was perceived by some to have a hawkish angle. Sacha Tihanyi, TD Securities' deputy head of EM strategy, wrote that the outlook "leaves an implicitly hawkish bias considering recent inflation outcomes and the market's positioning in the TIIE," referring to the benchmark rate used for cash balances. Benchmark Brazilian stocks dipped 0.2 percent, weighed on by losses among energy and materials stocks. Preferred shares of state-run oil firm Petroleo Brasileiro SA tumbled 1.6 percent, mirroring lower oil prices . Mining giant Vale SA clocked its lowest closing level in nearly 10 months, down 2.1 percent. Morgan Stanley downgraded the miner's U.S.-listed depository receipts, which fell 1.8 percent. The bank also eliminated the $17 price target it had, saying it lacks "clarity on what multiple the market will assign to the shares in the near term." Chilean stocks were flat while the local peso fell half a percent, hurt by a drop in the price of Chile's key export, copper. The country has relatively high exposure to global trade through its reliance on China as a primary destination for its exports of the industrial metal. Argentina's stocks benchmark fell 2.2 percent, while the country's peso weakened about 0.8 percent. Colombian stocks shed 1.2 percent as weak oil prices led to petroleum major Ecopetrol SA dropping 1.9 percent.

Key Latin American stock indexes and currencies at 2155 GMT

Stock indexes Latest Daily pct


MSCI Emerging Markets 1,041.97 -0.62 MSCI LatAm 2,845.63 -0.78 Brazil Bovespa 94,405.59 -0.24 Mexico IPC 43,624.55 -0.53 Chile IPSA 5,426.94 0.01 Argentina MerVal 35,928.99 -2.19 Colombia IGBC 11,923.68 -1.23 Currencies Latest Daily pct


Brazil real 3.7166 -0.17 Mexico peso 19.0884 0.07 Chile peso 657.8 0.00 Colombia peso 3,115.2 -0.36 Peru sol 3.324 0.00 Argentina peso (interbank) 37.8000 -0.66

(Reporting by Aaron Saldanha in Bengaluru and Paula Arend Laier in Sao Paulo; Editing by Dan Grebler)