EMERGING MARKETS-Latam stocks fall, tepid response to oil auctions hit Brazil's real

Sruthi Shankar and Agamoni Ghosh

Brazil's real@ (Updates prices) Nov 6 (Reuters) - Latin American stocks fell on Wednesday after a report said a trade deal between the United States and China could be delayed, while Brazil's real was knocked lower by underwhelming response to a closely watched auction of oil exploration blocs. MSCI's index of Latin American stocks fell 1.6% after a Reuters report said signing the deal could be delayed until December as terms and venue were not yet finalized. The Bovespa fell 0.5%, with shares in food processor JBS SA extending losses for a second day after a top prosecutor requested the annulment of plea bargain deals previously signed with former executives of the company. Stocks in Chile and Colombia also fell but Mexico's IPC index bucked the trend to climb 0.2% higher. Among currencies, Brazil's real stood out, down nearly 2%, after the country's biggest-ever oil auction that was expected to attract foreign investors received tepid response. A Petrobras consortium, including Chinese state-run companies CNOOC and CNODC won the massive Buzios oil block, without any rival bids as the lack of competition underscored the costly terms of the blockbuster oil round. Flavio Serrano, a senior economist at Haitong Bank, said investors had expected more participation from foreign firms and were disappointed with the results. If all the areas had received a bid, Brazil's government could have netted 106.5 billion reais ($26.7 billion) in signing bonuses, offering breathing space for a tight federal budget and cementing Brazil's ascendance as Latin America's oil powerhouse. Chile's peso rose 1%, while the Mexican peso rose marginally taking advantage of a weaker dollar.

Latin American stock indexes and currencies at 18:53 GMT

Stock indexes daily % change


MSCI Emerging Markets 1067.09 -0.39MSCI LatAm 2769.82 -1.72Brazil Bovespa 108117.92 -0.55Mexico IPC 43706.42 0.22Chile SPIPSA 4599.94 -2.75Argentina MerVal 35409.55 -3.961Colombia IGBC 13460.16 -0.79Currencies daily % change


Brazil real 4.0768 -2.07Mexico peso 19.1750 0.13Chile peso 741 1.04Colombia peso 3336 -0.37Peru sol 3.339 -0.06Argentina peso 59.6500 0.09


(Reporting by Agamoni Ghosh and Sruthi Shankar; Editing by Giles Elgood)