EMERGING MARKETS-LATAM Airline shares soar on Delta deal, Brazil's real set for weekly loss

for weekly loss@

Sept 27 (Reuters) - Chilean shares led Latin American stock markets higher on Friday as shares of the region's largest carrier, LATAM Airlines, rose sharply after U.S. carrier Delta Air Lines bought a sizeable stake. Delta bought a 20% stake in LATAM for $1.9 billion, creating a major new partnership and ending the Chilean carrier's ties with American Airlines, which has long been the leading U.S. carrier in the region. Shares of LATAM gained over 30%, thrusting Chile's SPIPSA index over 2% higher and lifting MSCI's index of Latin American stocks. As a result of the deal, Delta is set to exit Brazil's largest airline Gol, whose shares fell 6%, weighing on Sao-Paulo's Bovespa index. Brazil's real rose 0.4% after the central bank said the most efficient tools at its disposal would be used to intervene in the foreign exchange market if required.

The real is set to record its third straight week of losses, partly owing to interest rates being slashed to record lows. Mexico's peso and Chile's peso rose marginally, but were on track to end the week lower.

Latin American stock indexes and currencies at 13:19 GMT

Stock indexes daily % change


MSCI Emerging Markets 1005.99 -0.33MSCI LatAm 2691.11 0.09Brazil Bovespa 105207.58 -0.11Mexico IPC - -Chile IPSA 5144.26 2.35Argentina MerVal - -Colombia IGBC - -Currencies daily % change


Brazil real 4.1580 0.07Mexico peso 19.6445 0.10Chile peso 724.95 0.12Colombia peso 3448.51 -0.14Peru sol 3.3748 0.21Argentina peso 57.2700 -0.09


(Reporting by Agamoni Ghosh; editing by John Stonestreet)