(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
data.
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 %
change
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 %
change
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)
Our Standards: The Thomson Reuters Trust Principles.