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EMERGING MARKETS-Most Latam FX weaken; Mexican peso cheers slower rate cut signs

    * China, U.S. July retail sales disappoint
    * Mexican peso outperforms peers for the week 
    * Aeromexico surges after financing announcement
    * JBS, Natura top gainers in Brazil
    * U.S.-China trade talks over the weekend awaited 

 (Updates prices)
    By Shreyashi Sanyal and Susan Mathew
    Aug 14 (Reuters) - Mexico's peso firmed for the fourth
straight session on Friday on signs that the pace of further
monetary policy easing could slow, while other major Latin
American currencies declined after economic data from China and
the United States disappointed.
    Figures showing China's retail sales unexpectedly slipped in
July were followed by the same metric in the United States
rising less than expected. Risk appetite dwindled on the
prospect of a delayed economic rebound, with China being one of
Latam's biggest trading partners.
    Brazil's real slipped 1.2% against a weaker dollar
even as a central bank indicator showed economic activity in
Brazil expanded at a record pace in June, and as Goldman Sachs
revised up its 2020 outlook for the country's economy to a
contraction of 5% from the prior 7.5%.

    The Chilean and Colombian pesos fell and
posted weekly declines, with oil exporter Colombia's peso
marking its fifth straight week in the red as demand for crude
remained lackluster.
    Data showed Colombia's economy shrank 15.7% in the second
quarter, slightly less than a historic 16% expected by analysts.
  
    Mexico's peso rose 1%. The fact that Thursday's
decision by Mexico's central bank to cut the country's key
interest rate was not unanimous was seen as a sign that the pace
of future cuts could slow. 
    But "with the economy already in recession last year and
with rates so high relative to most of Mexico's peers, there is
room to cut without it leading to a currency crash," said
analysts at Rabobank. 
    The currency outperformed regional peers for the week, up
1.7%. A central bank member on Friday said Mexico's economic
recovery from the coronavirus pandemic is more likely to be
U-shaped. 
    Investors now await the outcome of a meeting between U.S.
and Chinese officials over the weekend about their Phase 1 trade
deal amid deteriorating relations between the world's two
largest economies.
    Among stocks, Argentina's Merval slipped 2.4%. The
country might delay its formal $65 billion bond restructuring
offer beyond Aug. 24, a source told Reuters.
    Aeromexico surged 9.4% after the troubled
Mexican carrier said it had lined up $1 billion in
debtor-in-possession financing with Apollo Global Management Inc
. 
    In Brazil, cosmetics maker Natura & Co topped the
main index after it said quarterly e-commerce sales surged and
that it will relaunch the Avon brand in the third quarter "with
a new business model." 
    Meat packer JBS SA jumped 5.2%. The company put
plans for a U.S. listing back on its agenda but said it will not
happen this year.  
        
    Key Latin American stock indexes and currencies 1924 GMT:
  Stock indexes           Latest   Daily %
                                   change
 MSCI Emerging Markets    1091.66    -0.41
                                   
 MSCI LatAm               2001.52    -0.02
                                   
 Brazil Bovespa         101038.80     0.58
                                   
 Mexico IPC              38908.64     0.76
                                   
 Chile IPSA               4013.62     0.22
                                   
 Argentina MerVal        48418.87   -2.434
                                   
 Colombia COLCAP          1148.92    -0.09
                                   
                                          
      Currencies          Latest   Daily %
                                   change
 Brazil real               5.4316    -1.21
                                   
 Mexico peso              21.9931     0.63
                                   
 Chile peso                 798.1    -0.70
                                   
 Colombia peso            3791.25    -0.77
                                   
 Peru sol                  3.5707    -0.03
                                   
 Argentina peso           73.1500    -0.05
 (interbank)                       
                                   
 
 (Reporting by Shreyashi Sanyal in Bengaluru; editing by
Jonathan Oatis)
  
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