EMERGING MARKETS-Latam FX set to snap 3-day rally as trade concerns set in

Oct 7 (Reuters) - Latin American currencies edged lower on Monday after a three day run of increases, as the dollar gained favor amid skepticism over the outcome of the U.S.-China trade talks this week. Markets in the region were coming off a positive week, when worries about global growth and trade disputes initially hit sentiment, but U.S. data on Friday showing modest job growth quelled some recession worries and sparked a rally in risky assets. MSCI's index of Latin American currencies was down 0.13% after rising 1.9% last week, while its equities counterpart edged down 0.3%, on course to erase all of last week's gains. Bloomberg reported over the weekend that Chinese officials were reluctant to agree to U.S. President Donald Trump's broad trade deal, denting sentiment ahead of a round of talks between the two sides on Oct. 10-11. The Brazilian real and the Mexican peso shed about 0.2% each, while Sao Paulo-listed shares fell 0.3%, dragged down by banks. However, shares of Banco Bradesco SA gained 1.4% after the company proposed to its board of directors the payment of an extraordinary dividend. Shares of telecom carrier Oi SA rose 3.5% after a report Spain's Telefonica SA was in talks with Mexico's America Movil and Telecom Italia to buy the company's assets.

Latin American stock indexes and currencies at 1408:

Stock indexes Latest Daily %


MSCI Emerging Markets 995.49 -0.11MSCI LatAm 2680.85 -0.41Brazil Bovespa 102257.66 -0.29Mexico IPC 43299.28 -0.27Chile IPSA 5030.00 -0.2Argentina MerVal - -Colombia IGBC 12950.73 0.04Currencies Latest Daily %


Brazil real 4.0643 -0.21Mexico peso 19.5441 -0.19Chile peso 716.5 -0.14Colombia peso 3441.48 -0.30Peru sol 3.3858 -0.20Argentina peso (interbank) 57.8200 -0.12

(Reporting by Sruthi Shankar in Bengaluru)