EMERGING MARKETS-Latam FX little changed on weak data, stimulus hopes

* Trading volumes fall with US Labor Day holiday
* Weak Chinese data weighs on commodity exporters
* Stimulus expectations support Latam currencies

By Natalia Cacioli
SAO PAULO, Sept 3 (Reuters) - Latin American currencies were
little changed on Monday after weak Chinese manufacturing data
weighed on the outlook for commodity exporters, while hopes of
further monetary stimulus supported prospects for dollar inflows
to emerging economies.
The Mexican peso was near flat at 13.1890 per dollar
as trading volumes dwindled with the U.S. Labor Day holiday.
The Brazilian real dipped 0.2 percent to 2.0331
per greenback after an official reading on China's manufacturing
sector fell below 50, the mark separating growth from
contraction, for the first time since November. China is
Brazil's main trading partner.
A similar survey from Markit, sponsored by HSBC, showed
Chinese factory activity shrinking at its fastest pace since
March 2009.
Poor manufacturing data was also seen in the euro zone,
where activity contracted for the 13th month. The numbers added
to the expectation that the European Central Bank will soon give
details about a much-anticipated bond buying program to lower
borrowing costs for countries such as Spain and Italy.
Investors expect the bank to provide details on that program
at the end of its monetary policy meeting on Thursday.
"We are still awaiting new stimulus measures; the focus now
is on the ECB meeting," said Mauricio Nakahodo, an economic
research consultant with Tokyo-Mitsubishi bank in Sao Paulo.
In Brazil, Nakahodo added, the real is expected to remain
trading within a narrow range of 2.0 to 2.1 per dollar, a level
"that stimulates exporters but does not bring inflationary
pressures."

Latin American FX prices at 1610 GMT:

Currencies daily % YTD %
change change
Latest
Brazil real 2.0335 -0.17 -8.11

Mexico peso 13.1890 0.08 5.92

Argentina peso* 6.3300 0.63 -25.28

Chile peso 480.8000 -0.08 8.01

Colombia peso 0.0000 #DIV/0! #DIV/0!

Peru sol 2.6070 0.12 3.45

* Argentine peso's rate between
brokerages