EMERGING MARKETS-Latam markets fall; Brazil's real dips on weak data

Susan Mathew

* U.S., China sign Phase 1 trade deal

* Comments after signing held no surprises

* Brazilian real slips after disappointing retail sales

* Rouble cuts losses incurred after govt's resignation

(New throughout, updates prices and market activity after U.S., China sign Phase 1 trade deal) Jan 15 (Reuters) - Brazil's real slid 1% on Wednesday on disappointing retail sales data, while Latin American stock markets were mostly lower, unmoved by the long-expected signing of a U.S.-China Phase 1 trade deal at a ceremony that held no surprises. The real touched its lowest in 5-1/2 weeks and led losses among regional currencies. Data showed retail sales in Latin America's biggest economy rose just 0.6% in November from the previous month, below a forecast of 1.1%. "Both retail sales and industrial production, the latest indicators, have shown that there is little consistency in the recovery process of the Brazilian economy, which hinders local markets a little," said Alvaro Bandeira, chief economist at the digital bank, Modalmais. Sao Paulo-listed stocks lost 1% and posted their biggest decline in more than seven weeks. The index marked its seventh losing session in nine. After roiling market for 18 months, Washington and Beijing took the first step toward ending their trade war by signing a Phase 1 trade deal, a move already priced into markets. The deal cut some U.S. tariffs on Chinese goods in exchange for Chinese pledges to purchase more American farm, energy and manufactured goods and address some U.S. complaints about intellectual property. Wall Street held gains and remained near all-time highs, but regional bourses barely reacted, staying in well the red. MSCI's index of Latam stocks slipped 1.4% and looked to clock its biggest daily decline since late November. China's pledge to buy more U.S. agricultural goods could hurt Brazil by reducing demand in the biggest market for Brazilian soybeans, said Edward Glossop, Latin America economist at Capital Economics in London. In Mexico, shares fell 0.3%, while the peso - a weather vane for trade sentiment - traded little changed against a weaker dollar. The Chilean peso eased about 0.6% on falling prices for cooper, the country's main export. Colombia's currency tracked oil prices lower. Elsewhere, Russia's rouble traded flat after dropping to 61.81 per dollar following the surprise resignation of Prime Minister Dmitry Medvedev's government.

Key Latin American stock indexes and currencies at 1951 GMT:

Stock indexes Latest Daily %


MSCI Emerging Markets 1138.19 -0.5MSCI LatAm 2872.27 -1.39Brazil Bovespa 116465.28 -0.99Mexico IPC 44633.24 -0.31Chile IPSA 4883.68 -0.78Argentina MerVal 41028.31 -1.454Colombia COLCAP 1649.43 -0.23Currencies Latest Daily %


Brazil real 4.1779 -1.13Mexico peso 18.8047 -0.16Chile peso 775.2 -0.58Colombia peso 3297.65 -0.35Peru sol 3.323 -0.06Argentina peso 59.9500 0.18


(Additional reporting by Luana Maria Benedito in Sao Paulo, Sagarika Jaisinghani and Ambar Warrick in Bengaluru; Editing by David Gregorio)