EMERGING MARKETS-Chile peso eases 1% as protests rage on; Latam FX slips

Sagarika Jaisinghani and Shreyashi Sanyal

* Chile unrest continues despite government concessions

* U.S.-China trade jitters weigh on sentiment

* Mexican peso, Argentine peso dip

* Brazil real firms as central bank signals stable inflation

Nov 19 (Reuters) - The Chilean peso shed more than 1% on Tuesday amid prolonged civil unrest despite some government concessions, while growing uncertainty about a U.S.-China trade deal kept other Latin American currencies directionless in subdued trading. Chile's currency and stocks resumed their slide after a brief reprieve on Friday, when lawmakers agreed to hold a referendum to replace a dictatorship-era constitution. The peso, which had soared nearly 4% on the news, is still on course for its worst month in more than a year. "People are just being cautious because we haven't seen this kind of social unrest in Chile and it is worrisome (since) we don't know where things are going to go from here," said Christian Lawrence, senior market strategist, Latam FX at Rabobank in New York. The Mexican peso, Argentine peso and Peruvian sol traded lower against a flat dollar, hit by trade jitters after a report on Monday that Beijing was pessimistic about a deal with Washington on rolling back tariffs. An index of Latin American currencies dipped more than half a percent and was on course for its worst day in a week. Brazil's real firmed slightly to 4.21 to the dollar after hitting a record low in the previous session as the central bank's president, Roberto Campos Neto, said inflation was low and stable, and that the country's foreign exchange reserves were "quite high." On Monday, the currency crossed a key mark at 4.20 to the dollar, a level last breached in August, when the central bank was prompted to intervene for the first time in over a decade. The bank has since sold dollars in the spot market almost daily to shore up the real, sparking a debate about its intervention policy. It said on Tuesday it would sell up to $600 million through reverse currency swaps, but later canceled the auction ahead of a market holiday on Wednesday. "From a purely fundamental perspective, the real is undervalued at the moment, but the key thing is that it rose above 4.20," said Christian Lawrence, senior market strategist, LatAm FX at Rabobank in New York. Brazil's stock index was down 0.4% in subdued trading, weighed down by financial stocks, while Mexico shares were up marginally after a market holiday on Monday.

Key Latin American stock indexes and currencies at 1543 GMT:

Stock indexes Latest Daily % changeMSCI Emerging Markets 1056.59 0.42MSCI LatAm 2653.91 -0.95Brazil Bovespa 105841.81 -0.4Mexico IPC 43443.44 0.12Chile SPIPSA 4758.42 -1.16Argentina MerVal 30905.51 -2.97Colombia IGBC - -Currencies Latest Daily % changeBrazil real 4.2129 -0.18Mexico peso 19.3662 -0.28Chile peso 786.9 -1.82Colombia peso 3432.39 0.19Peru sol 3.3788 -0.20Argentina peso (interbank) 59.7000 -0.03

(Reporting by Sagarika Jaisinghani and Shreyashi Sanyal in Bengaluru)