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EMERGING MARKETS-Chile peso slumps to record low; Trump trade speech eyed

By Sagarika Jaisinghani and Susan Mathew

* Chile stocks touch 2-1/2 year low * Brazil, Mexico currencies fall as Trump speech awaited * Planemaker Embraer hits one-month low after results * Focus on Mexican central bank meeting on Thursday By Sagarika Jaisinghani and Susan Mathew Nov 12 (Reuters) - Chile's peso sank 4% to a record low on Tuesday as massive anti-government street protests showed signs of intensifying further, while currencies in Brazil and Mexico dropped as the dollar strengthened ahead of a speech by U.S. President Donald Trump on trade later in the day. The Chilean peso fell to 790.98 against the dollar, while stocks slumped to a two-and-a-half-year low, after state workers signalled they were not satisfied with the government's decision to rewrite the country's dictatorship-era constitution. The currency has now fallen for four straight sessions, losing more than 5% this week, as the South American country has been racked by almost a month of unrest that has left at least 20 dead and wreaked billions of dollars of damage to public infrastructure and private businesses. "I thought the measures announced last week would provide a bit of stability and we'd calm down around 750 (pesos to the dollar)," said Christian Lawrence, senior market strategist, Latam FX at Rabobank. "But things have intensified, which means we are now in a situation where we'd have to be very very brave to sell dollar-CLP." The gloom was felt across other Latin American economies, with Brazil's real and the Mexican peso shedding 0.6% and 0.2%, respectively, as the dollar held near one-month highs. [FSX/} Trump's lunchtime speech on trade policy at the Economic Club of New York will be closely watched by investors for signs of progress in the U.S.-China trade deal after mixed reports last week. On Thursday, all eyes will be on a Mexican central bank meeting, where it is widely expected to cut its benchmark lending rate for the third time this year as the economy shows signs of stagnating, a Reuters poll showed. Sao Paulo-listed shares fell nearly 1% as investors shrugged of data showing Brazil's services sector activity rising at its fastest pace in September. In corporate news, shares of Brazilian fuel distribution company Petrobras Distribuidora SA fell 4.4% and were set for their worst day since March after reporting a fall in third-quarter revenue. Planemaker Embraer dropped 3% to a one-month low as it reported a quarterly loss and signalled it may issue a smaller dividend to shareholders. Key Latin American stock indexes and currencies at 1435 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1056.03 0.3 MSCI LatAm 2693.03 -1.74 Brazil Bovespa 107319.09 -0.97 Mexico IPC - - Chile IPSA 4441.52 -3.85 Argentina MerVal 34069.84 1.214 Colombia IGBC 13321.29 0 Currencies Latest Daily % change Brazil real 4.1753 -0.80 Mexico peso 19.1550 -0.25 Chile peso 791.2 -4.64 Colombia peso 3373.5 -1.17 Peru sol 3.3688 -0.23 Argentina peso 59.7500 -0.08 (interbank) (Reporting by Sagarika Jaisinghani and Susan Mathew in Bengaluru Editing by Alistair Bell)