EMERGING MARKETS-Chile, Peru lead Latam FX losses; forex swap buoys Brazil' real

    * Potential Chinese price curbs weigh on copper exporters
    * Brazil to start $12.2 bln FX swaps rollover program
    * Mexico inflation well above central bank target in early

 (Adds comments, bullets; Updates prices throughout)
    By Susan Mathew and Shreyashi Sanyal
    May 24 (Reuters) - The currencies of Chile and Peru led
declines in Latin America on Monday on concerns over curbs on
industrial metals in top consumer China, while Brazil's real
recovered from over two-week lows as the central bank
    Chile's peso fell 1.2%, while Peru's sol
dropped 1.5%. A rise in the price of copper was capped after 
China's market regulators warned industrial metal companies to
maintain "normal market order" during talks on the significant
gains in metals prices this year.
    Tensions in Chile regarding the possible overhaul of its
market-friendly constitution and a likely socialist leadership
in Peru also have weighed on copper prices. 
    "The (Chilean) government's poor showing in an election to
decide the relative weight of participation by Chilean political
parties in a re-write of the country's constitution introduces
further Chilean asset risk," said Sacha Tihanyi, head of
emerging markets strategy at TD Securities. 
    Brazil's real rose 0.6% after the central bank said
it will start a program of foreign exchange swap auctions on
Monday that will eventually roll over the $12.2 billion worth of
traditional swaps contracts due to expire on Aug. 2.

    The political atmosphere in the country grew tenser after
former leftist and centrist presidents met to try to join forces
and oppose current far-right leader Jair Bolsonaro in elections
next year.
    "With regard to the BRL, it is particularly important to
watch whether President Bolsonaro flirts with further spending
packages in an attempt to avoid a drop in his poll prospects,
and whether fears increase again that the spending cap will be
undermined," Commerzbank currency analyst Alexandra Bechtel
    Data on Monday showed annual headline inflation in Mexico
stood at 5.80% in the year through the first half of May, well
above the central bank's target of 3%, strengthening the case to
end an easing cycle. The peso rose 0.4%.    
    In equities, Aeromexico's shares fell 0.2%
after sources said the U.S. government is preparing to downgrade
Mexico's aviation safety rating, a move that would bar Mexican
carriers from adding new U.S. flights and limit airlines'
ability to carry out marketing agreements.

    Meanwhile on Friday, a closely followed JPMorgan survey
showed investors this month made their biggest cut to "hard
currency" emerging market sovereign bond positions in five
    Key Latin American stock indexes and currencies at 1927 GMT:
         Stock indexes                 Latest    Daily %
 MSCI Emerging Markets                  1327.95    -0.16
 MSCI LatAm                             2479.07     0.43
 Brazil Bovespa                       123963.41     1.12
 Mexico IPC                            49407.19    -0.75
 Chile IPSA                             4108.24     0.68
 Argentina MerVal                      56221.87   -1.554
 Colombia COLCAP                        1226.20    -1.44
            Currencies                 Latest    Daily %
 Brazil real                             5.3218     0.61
 Mexico peso                            19.8550     0.39
 Chile peso                                 730    -1.45
 Colombia peso                          3732.25     0.33
 Peru sol                                3.8098    -1.52
 Argentina peso (interbank)             94.2700    -0.02
 Argentina peso (parallel)                  150     3.33

 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru;
Editing by Barbara Lewis and Andrea Ricci)