* Latam assets fall as economic uncertainty weighs * Brazilian real hits one-month low * Mexican peso, Chilean peso slide * Broader optimism fueled by imminent U.S.-China trade deal * Brazil's Cemig hits seven-month high on CEO appointment By Sagarika Jaisinghani and Ambar Warrick Jan 13 (Reuters) - Latin American currencies tumbled on Monday, led by the Brazilian real, as prolonged economic uncertainty in the region more than offset broader optimism about an imminent U.S.-China trade deal. A basket of Latin American currencies shed 1.2% and was on course for its worst day in four-and-a-half months. The Brazilian real lost about 0.9% to hit its lowest level in a month, while the Mexican peso shed 0.3% and the Chilean peso eased more than half a percent versus a stronger dollar. Latin American equities were also down 0.4%, in sharp contrast to global stocks, which nudged higher to hover near all-time highs as investors awaited the signing of the Phase 1 Sino-U.S. trade deal on Jan. 15. "We do have some domestic factors in Latam that have weighed somewhat and there is a little bit of a view that this trade deal, at the margin, is benefiting other regions more than Latam," said Christian Lawrence, senior market strategist at Rabobank in New York. Demand for riskier Latin American assets had waned last week as tensions between Washington and Tehran grew after the United States killed a top Iranian general in a drone strike, prompting a retaliation. While global sentiment has since improved as both countries signaled no further escalation in military tensions, investors in Latin America have stayed on the sidelines as economies grapple with a clutch of weak data, including faltering regional inflation. Latest data from Mexico showed gross fixed investment fell 1.5% in October from September and 8.6% versus a year earlier. Although major central banks stepped in last year with several rounds of monetary stimulus, Latin American currencies are expected to tread carefully this year, partly on concerns about more protectionist talk in the 2020 U.S. presidential elections, a Reuters poll showed. Brazil's central bank is next due to meet on Feb. 4 and 5, where it will comment on further interest rate cuts after four consecutive reductions last year. Among individual stocks, Brazilian state-run power firm Cemig rose as much as 2.6% to a seven-month high after its board named Reynaldo Passanezi Filho as chief executive officer, effective Monday. The broader Brazilian equity index added about 1%. Latin American stock indexes and currencies at 1501 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1142.52 0.78 MSCI LatAm 2905.20 -0.43 Brazil Bovespa 116699.16 1.04 Mexico IPC 44767.42 0.24 Chile SPIPSA 4994.58 -0.03 Argentina MerVal 42566.50 -0.407 Colombia Colcap 1652.90 -0.12 Currencies Latest Daily % change Brazil real 4.1325 -0.95 Mexico peso 18.8450 -0.34 Chile peso 778.5 -0.86 Colombia peso 3294.19 -0.79 Peru sol 3.3388 -0.23 Argentina peso (interbank) 59.8150 - (Reporting by Sagarika Jaisinghani in Bengaluru; editing by Grant McCool)
Our Standards: The Thomson Reuters Trust Principles.