(Recasts, adds closing prices throughout) April 5 (Reuters) - Brazilian stocks dropped on Wednesday on after a poll stoked concerns that President Michel Temer's government may struggle to pass a pension reform package seen as needed to rein in public spending.
Brazil's benchmark Bovespa stock index sank 1.5 percent.
A survey of lawmakers published by newspaper Estado de S. Paulo on Wednesday said that not even a watered-down version of the pension reform bill would muster enough votes to clear the lower house of Congress.
The reform plan is seen as key for Brazil to plug a widening budget gap. Brazilian stocks hit a nearly six-year high in February on bets Temer would be able to pass reforms.
In Mexico, the peso currency shed early gains after minutes of the latest Federal Reserve meeting backed expectations for higher U.S. interest rates that could sap demand for riskier emerging market assets.
The Banco de Mexico placed its entire offer of $200 million in foreign exchange hedges in an auction in which demand far outstripped supply, reflecting appetite for the program aimed at supporting the country's currency.
The peso is up around 10 percent so far this year, rebounding from all-time lows on hopes that U.S. President Donald Trump will not impose heavy tariffs on Mexican exports to the United States as he had threatened.
Key Latin American stock indexes and currencies at 2100 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 969.22 0.42 12.4 MSCI LatAm 2,667.84 -0.05 13.98 Brazil Bovespa 64,774.76 -1.51 7.55 Mexico IPC 49,207.61 -0.27 7.81 Chile IPSA 4,872.82 0.98 17.21 Chile IGPA 24,376.54 0.9 17.57 Argentina MerVal 20,683.02 -0.72 22.22 Colombia IGBC 10,194.35 0.13 0.65 Venezuela IBC 45,494.90 -0.54 43.49 Currencies Latest Daily YTD pct pct change change Brazil real 3.1137 -0.52 4.35 Mexico peso 18.8270 -0.05 10.162 Chile peso 658.2 0.33 1.90 Colombia peso 2,859 0.00 4.98 Peru sol 3.247 0.09 5.14 Argentina peso 15.3600 -0.03 3.35 (interbank) Argentina peso 15.82 0.38 6.32 (parallel) (Reporting by Michael O'Boyle, additional reporting by Marcelo Teixeira; editing by G Crosse)