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EMERGING MARKETS-Chile's peso leads Latam FX lower; stocks retreat

By Susan Mathew

By Susan Mathew Nov 11 (Reuters) - Chile's peso slumped on Monday and currencies in Brazil and Mexico were mixed as a clutch of political crises and uncertainty over a U.S.-China trade deal dulled sentiment. Chile's peso weakened 1.4%, falling for the fourth straight session and leading declines among Latam currencies. The currency has lost around 5% over the last three weeks amid massive local protests, which among other demands, have called for a revision to the Chilean constitution. The government yielded to that demand on Sunday. In Bolivia, President Evo Morales stepped down after weeks of protests over a disputed Oct. 20 election, as a report from the Organization of American States revealed serious irregularities in the ballot. For market participants, the unrest presents some buying opportunity as those assets get cheaper, said Ed Al-Hussainy, a senior currency analyst at Columbia Threadneedle. "There is going to be a catch-up in these markets as the political uncertainties settle down in the next couple of quarters," Al-Hussainy said. Brazil's real traded 0.3% higher against a slightly weaker dollar, while Mexico's peso, a weather vane for trade sentiment, was near flat. Data on Monday showed Mexican industrial output was largely unchanged in September compared with August, but down 1.8% year-over-year. Broader market sentiment was dented by less-than-encouraging comments from U.S. President Donald Trump regarding a trade deal with China, as well as an escalation in political unrest in Hong Kong. Stocks in the region mostly fell, with Brazil shares cutting some early losses to trade flat. Iron ore miner Vale and stakeholder Bradespar weighed on the index after Vale narrowed its 2019 guidance for sales of iron ore and pellets. Chilean stocks fell more than 1%, while those in Argentina moved higher. Colombian markets were closed for a local holiday. Key Latin American stock indexes and currencies at 1451 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1050.77 -1.32 MSCI LatAm 2726.94 -0.48 Brazil Bovespa 107581.17 -0.04 Mexico IPC 43583.32 -0.27 Chile IPSA 4634.00 -1.21 Argentina MerVal 34384.46 0.742 Colombia IGBC 13321.29 -1.13 Currencies Latest Daily % change Brazil real 4.1502 0.42 Mexico peso 19.0989 -0.01 Chile peso 754.5 -1.06 Colombia peso 3336 0.00 Peru sol 3.3608 -0.05 Argentina peso 59.5000 0.01 (interbank) (Reporting by Susan Mathew in Bengaluru; Editing by Dan Grebler)