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EMERGING MARKETS-Latam FX slides but Brazil's real bolstered by fiscal reform bill

Agamoni Ghosh and Medha Singh

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* JBS shares plunge after request to annul plea bargain

* Brazil govt proposes market-friendly reforms

* Chile President Pinera says will not resign - BBC

Nov 5 (Reuters) - Latin American currencies broadly weakened on Tuesday after an improvement in service sector activity in the United States fired up the dollar, but Brazil's real outperformed on expectations of new market-friendly reforms. A reading of the ISM services index in the U.S. improved in October, easing some concerns about a slowdown in the world's largest economy and lifting the greenback. MCSI's index tracking currencies in the Latam region fell 0.5% to extend losses from the previous session. Mexico's peso fell to a three-week low, while Chile's peso fell nearly 1% on uncertainty surrounding the country's political stability. Chile's embattled President Sebastian Pinera rejected the notion of resigning and believes he will reach the end of his term in just over two years despite intense anti-government protests that are roiling the country, according to a BBC interview. Latin American stocks fell 0.4% with Brazil's Bovespa coming off record highs. Brazilian food processor JBS dropped about 5% after the country's top prosecutor requested the annulment of plea bargain deals previously signed with former executives of the company. Mexican stocks slid 0.6% with telecommunications group America Movil down 2.6% as HSBC downgraded the stock to "hold" from "buy."

BRAZIL REFORMS Brazil's real firmed 0.7% to outperform its Latin American peers on hopes that the government's newly proposed reforms will help bring down the country's mounting fiscal deficit. Economy Minister Paulo Guedes unveiled a bundle of wide-ranging reforms on Tuesday, aimed at cutting spending and changing budget rules in a drive to reduce the government's chronic fiscal deficit. While the proposal was widely expected by economic and political analysts, the approval of the reform is not fully priced in, said Rabobank's Brazil economist Gabriel Santos in a note, indicating that many investors are skeptical that an effective bill will reach the finish line. President Jair Bolsonaro and his economy minister hope the proposals will be approved by next year, building on the momentum from a landmark pension reform that was passed by Congress in September.

Latin American stock indexes and currencies at 19:35 GMT

Stock indexes daily % change

Latest

MSCI Emerging Markets 1070.81 0.59MSCI LatAm 2819.02 -0.39Brazil Bovespa 108626.95 -0.14Mexico IPC 43572.96 -0.55Chile IPSA 4729.99 -1.49Argentina MerVal 36830.97 -1.201Colombia IGBC 13499.88 0.98Currencies daily % change

Latest

Brazil real 3.9905 0.52Mexico peso 19.2063 -0.17Chile peso 748.7 -1.00Colombia peso 3307 0.39Peru sol 3.337 -0.15Argentina peso (interbank) 59.6500 0.09

(Reporting by Agamoni Ghosh and Medha Singh in Bengaluru; Editing by Andrea Ricci)