Bonds News

EMERGING MARKETS-Latam assets sit out global rally as data disappoints

 (New throughout, updates prices, market activity and comments)
    * Brazil industrial output slumps more than expected
    * Mexican peso falls; inflation falls further below target
    * Buenos Aires bond payment eyed 

    By Susan Mathew
    Jan 9 (Reuters) - Latin American stocks and currencies
bucked a rally in global markets on Thursday, with Brazil shares
extending losses to a fifth day due to disappointing economic
    MSCI's index of Latam currencies slipped
0.4%, while its stocks counterpart fell 0.7%.

    A day after markets worldwide rallied following a
de-escalating tone from Washington and Tehran regarding their
conflict, global investors cheered news that China's Vice
Premier Liu He would sign a Phase 1 trade deal with the United 
States next week.
    Still, "until these events are formally announced and
signed, the market will stay at this current level," said
Ricardo Gomes da Silva, director of Correparti Corretora.
    Latam currencies gave up last session's gains with Brazil's
real down 0.6% as data showed a sharper-than-expected
slump in industrial production.
    The data means "that while we're getting a bit of optimism
about the prospects of Brazil's economy this year, it's still a
pretty slow and fragile recovery," said William Jackson, chief
emerging markets economist at Capital Economics in London.
    Mexico's peso retreated from near nine-month highs
after official numbers showed consumer price inflation ended
2019 further below the central bank's target, fueling
expectations of additional rate cuts by the central bank.

     A Reuters poll suggested investor caution about Latam
currencies in 2020 due to regional political tensions and
worries over protectionist talk in the coming U.S. presidential
election campaign.
    Stocks listed in Sao Paulo slipped 0.5% with
payments company Cielo the biggest decliner on the
benchmark index after a ratings downgrade. 
    Tracking crude prices lower, oil firm Ecopetrol
dragged Colombia's COLCAP index index lower for a
third straight session. Mexico's IPC index traded flat.

    In Argentina, debt talks face their first big test this
month with a $277-million payment due on a Buenos Aires
provincial bond, seen as a gauge of how the indebted South
American nation's new government will handle creditors.

    Argentina, which spiraled into a debt crisis last year and
has been grappling with recession, faces broader restructuring
talks on around $100 billion in debts, including a huge loan
from the International Monetary Fund.
    Key Latin American stock indexes and currencies at 1930 GMT:
    Stock indexes             Latest    Daily %
 MSCI Emerging Markets         1128.50      1.54
 MSCI LatAm                    2904.17     -0.72
 Brazil Bovespa              115715.64     -0.46
 Mexico IPC                   44433.20     -0.08
 Chile IPSA                    4898.40     -0.23
 Argentina MerVal             41829.23     1.983
 Colombia COLCAP               1643.50     -0.81
       Currencies             Latest    Daily %
 Brazil real                    4.0871     -0.87
 Mexico peso                   18.8550     -0.25
 Chile peso                     767.45     -1.26
 Colombia peso                  3252.9     -0.34
 Peru sol                         3.32     -0.18
 (Additional reporting by Luana Maria Benedito in Sao Paulo,
Sagarika Jaisighani and Ambar Warrick in Bengaluru; Editing by
David Gregorio)