EMERGING MARKETS-Brazilian assets lead Latam markets lower; Chile's peso tumbles


Sept 23 (Reuters) - Brazilian assets led Latin American markets lower on Monday as uncertainty over the United States and China reaching a trade deal and disappointing growth data from major economies made investors cautious. Although Washington and Beijing labeled their two-day talks last week as "productive" and "constructive," a deal appeared elusive after Chinese officials unexpectedly canceled a visit to U.S. farms on Friday. Focus now turns to high-level talks planned for October. MSCI's index for Latin American stocks fell 0.6%, led by Brazil's Bovespa, dragged down mainly by financial companies. Shares of Embraer fell nearly 2% after a Reuters report said EU antitrust regulators are set to open a full-scale investigation of Boeing's $4.75 billion bid for a controlling stake in Brazilian planemaker. The real slid 0.6%, on course to end the month lower. Data showed Latin America's largest economy posted a current account deficit of $4.27 billion in August, slightly wider than the $3.96 billion shortfall forecast. Also pressuring currencies in the region was a firmer dollar, which gained after the euro fell following poor manufacturing activity readings in the euro zone showing contraction at its steepest rate since late 2012 as demand sank.

Colombia's peso moved 0.3% lower, while Mexico's peso was mostly flat. Chile's peso slumped nearly 1% at one point as prices of copper, the country's top export, fell to their lowest in two and a half weeks. Chilean central bank meeting minutes showed policymakers considered cutting the benchmark interest rate by up to three- quarters of a percentage point before unanimously settling on a less drastic 50 point cut to 2%.

Latin American stock indexes and currencies at 14:35 GMT

Stock indexes daily %Latest changeMSCI Emerging Markets 1015.02 -0.61MSCI LatAm 2676.81 -0.44Brazil Bovespa 104272.16 -0.52Mexico IPC 43412.49 -0.34Chile IPSA 5059.18 -0.27Argentina MerVal 29365.35 -2.312Colombia IGBC 12953.06 -0.09Currencies daily %

change Latest

Brazil real 4.1684 -0.37Mexico peso 19.4461 0.05Chile peso 722.4 -1.23Colombia peso 3430.13 -0.44Peru sol 3.3638 -0.17Argentina peso 56.9300 -0.46


(Reporting by Agamoni Ghosh in Bengaluru; Editing by Dan Grebler)