EMERGING MARKETS-Mexican peso leads Latam FX losses on fears of slowing growth

    * Brazil stocks recover sharply from near 1-year low
    * Mexican peso at 3-week low 

 (Adds details, updates prices)
    By Susan Mathew and Ambar Warrick
    Nov 1 (Reuters) - Mexico's peso slipped 1.4% on Monday,
extending losses after data last week had shown an economic
contraction, while most other Latin American currencies
retreated amid caution ahead of a Federal Reserve meeting this
    Data last week showed Mexico's first economic contraction
since a recovery began from the coronavirus pandemic, posing a
challenge to the central bank's monetary policy tightening cycle
amid stubbornly high inflation, which analysts see taking
    The peso, which fell 1.8% last week, extended
declines to a fifth straight session and hit a three-week low.  
    "Mexico faces a more challenging outlook as the economy
slows heading into 2022 ... Banxico will continue to hike rates
as core inflation remains under pressure, adding yet more
downside risks for growth ... political risks will remain
elevated, further clouding the outlook for 2022," emerging
market economists at TS Lombard said. 
    COVID-19 vaccine rollouts and the trajectory of the virus
are other factors to be watched, they said. "That said, external
demand will still provide a key boost to the economy and strong
remittances will continue to support domestic consumer
    Brazil's real fell 0.5%, in line with broader EM
peers, with all eyes on the Fed's meeting on Tuesday and
Wednesday when the U.S. central bank is expected to announce the
start of a reduction in its bond purchases and perhaps hint at
the timeline for future interest rate hikes. The dollar traded
steady on Monday.
    Markets in Chile, Colombia and Peru were closed for local
    Among stocks, Brazilian fast food chain operator BK Brasil
Operacao e Assessoria a Restaurantes soared 9% after
it announced it had canceled an agreement with private equity
firm Vinci Partners to acquire Domino's Pizza Brasil.

    Brazil's Bovespa index jumped 2.2%, boosted by
financials and energy companies as it recovered from near
one-year lows. 
    Brazilian President Jair Bolsonaro said on Monday that
dealing with high fuel prices in the country is his top priority
right now, adding that he sees the privatization of Petrobras
 as an "ideal" move. Petrobras' shares jumped 3.6%. 

    Key Latin American stock indexes and currencies:
                              Latest      Daily % change
 MSCI Emerging Markets         1263.59               -0.09
 MSCI LatAm                    2127.10                0.88
 Brazil Bovespa              105726.87                2.15
 Mexico IPC                   51714.36                0.79
 Argentina MerVal             86779.65               3.852 Currencies             Latest      Daily % change
 Brazil real                    5.6682               -0.48
 Mexico peso                   20.8268               -1.35
 Argentina peso                99.8100               -0.08
 (Reporting by Susan Mathew and Ambar Warrick in Bengaluru
Editing by Paul Simao and Sandra Maler)