November 17, 2017 / 11:27 PM / a year ago

EMERGING MARKETS-Mexico peso up on NAFTA talks, uncertainty over U.S. tax cuts

 (Updates prices)
    SAO PAULO, Nov 17 (Reuters) - The Mexican peso
firmed on Friday amid expectations that ongoing NAFTA talks in
Mexico City would adopt a slightly more deliberative tone than
in the past and focus on low-impact issues.
    The peso, up 0.64 percent on the day, was also lifted by a
weaker dollar that sank on mounting uncertainty over major tax
cuts sought by U.S. President Donald Trump and his Republican
allies in Congress.
    Late on Thursday, Reuters reported that Canada is open to
reviewing the North American Free Trade Agreement every five
years instead of terminating the deal automatically if it is not
renegotiated as the United States has proposed.
    In a note to clients, Citibanamex said that the current
round of NAFTA talks would focus on less controversial topics
and Mexico was poised to present creative solutions, which would
ease nervousness in the markets.
    Equities were mixed across the region, with Chile's
blue-chip IPSA index up 1.45 percent, as the nation
heads into an election weekend in which market darling Sebastian
Pinera is expected to deliver a strong performance.
    Santiago-listed shares in Latam Airlines Group SA,
Latin America's largest carrier, jumped more than 3 percent
after Deutsche Bank raised its target price on the stock.
    Chile's banking sector was also performing well after Fitch
said the country's largest banks were ready for Basel III
liquidity rules.
    Brazil's Bovespa index also posted gains, helping by
solid demand for materials such as iron, as well as WTI and
Brent crude oil.
    Key Latin American stock indexes and currencies at 2200 GMT.
 Stock indexes          Latest      Daily pct    YTD pct
                                       change     change
 MSCI Emerging         1,136.45          0.99       31.8
 MSCI LatAm            2,775.74          1.39      18.59
 Brazil Bovespa       73,437.28          1.28      21.93
 Mexico IPC           47,857.14          0.23       4.85
 Chile IPSA            5,391.75          1.45      29.88
 Chile IGPA           27,139.76          1.31      30.89
 Argentina MerVal     27,128.50         -0.51      60.35
 Colombia IGBC        10,817.39          0.62       6.81
 Venezuela IBC           685.45          1.74     -97.84
 Currencies              Latest     Daily pct    YTD pct
                                       change     change
 Brazil real             3.2573          0.10      -0.25
 Mexico peso            18.9320          0.64       9.57
 Chile peso              625.55          0.64       7.22
 Colombia peso         2,997.31          0.47       0.14
 Peru sol                 3.241          0.15       5.34
 Argentina peso         17.4825          0.01      -9.19
 Argentina peso           18.04          0.11      -6.76

 (Reporting by Gram Slattery; Editing by Meredith Mazzilli and
James Dalgleish)
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