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EMERGING MARKETS-Chilean peso cheers hawkish central bank minutes

    * August 75-bps hike was unanimous decision -Chile cenbank
minutes
    * Brazil's Bradespar soars 7.3% 
    * Colombian government signs tax reform bill into law
    * Argentine inflation rise by the least in a year 

    By Susan Mathew
    Sept 15 (Reuters) - Hawkish central bank minutes helped push
Chile's peso into the black on Wednesday, while Bradespar
, one of the biggest shareholders of Brazilian miner
Vale, surged on a plan to distribute almost $1
billion in Vale shares. 
    The Chilean currency rose 0.2%, extending gains to a
fourth straight session. 
    Lifting the currency were rising copper prices as well as
central bank minutes that showed a 75-basis-point hike in the
key interest rate last month was a unanimous decision as the
economy recovered strongly from the fallout of the COVID-19
pandemic. 
    "The (central bank's) Board reiterated the message to bring
the rate to neutral by the first half of 2022, which translates
into 50 to 75bp hikes over several meetings," strategists at
Citi said in a note to clients.
    "Markets are already pricing 275bp in hikes over the next 12
months," they said.
    Most other Latin American currencies made lackluster moves,
although some erased session losses as the dollar weakened, with
all eyes on next week's U.S. Federal Reserve policy decision.
  
    Colombia's currency trended lower. The government on
Tuesday signed a heavily revised tax reform bill into law. Citi
strategists said the law will help stabilize debt levels but not
reduce it considerably.
    "For debt convergence, a new tax reform is necessary in the
next administration. Meanwhile, the current bill limits the next
administration's fiscal space ... as part of the new fiscal rule
..." 
    Brazil's real was flat. A central bank survey showed
Brazil's economic activity rose in July more than expected.  
    The real is down about 2% so far this month,
underperforming regional peers as well as a broad index of
emerging market currencies, as political tensions rise. 
    Meanwhile, losses on Sao Paulo's main equity index
were capped by a 7.3% jump in holding company Bradespar SA after
it announced its plan for distributing shares of Vale SA.

    Bradespar, owns a 5.73% stake in Vale, worth 27.6 billion
reais based on Tuesday's closing price, and after the
distribution its stake will be 3.23%. 
    Airline Gol shares rose 4.6% after announcing an
exclusive code-share agreement with American Airlines,
under which it will receive a $200 million equity investment.
  
    In Argentina, data on Tuesday showed inflation rose 2.5% in
August, the least in over a year, but the annual rate still
stands at 51.4%. Analysts at Credit Suisse expect inflation to
end the year at 50%.
     Argentina's draft budget, expected to be unveiled this
week, would include plans for economic growth of between 3% and
4% in 2022, a government source told Reuters on Tuesday,
slightly lower than targets the government had previously
flagged.
        
    Key Latin American stock indexes and currencies at 1420 GMT:
   Stock indexes           Latest    Daily %
                                     change
 MSCI Emerging Markets      1288.58    -0.58
                                     
 MSCI LatAm                 2406.35     -0.4
                                     
 Brazil Bovespa           115685.68    -0.43
                                     
 Mexico IPC                51967.93     0.29
                                     
 Chile IPSA                 4433.61     0.55
                                     
 Argentina MerVal                 -        -
                                     
 Colombia COLCAP            1318.83     0.66
                                     
                                            
      Currencies           Latest    Daily %
                                     change
 Brazil real                 5.2552     0.06
                                     
 Mexico peso                19.8968     0.03
                                     
 Chile peso                   781.7     0.22
                                     
 Colombia peso              3829.53    -0.04
                                     
 Peru sol                     4.099    -0.11
                                     
 Argentina peso             98.2400    -0.02
 (interbank)                         
                                     
 
 (Reporting by Susan Mathew in Bengaluru; editing by Jonathan
Oatis)
  
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