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EMERGING MARKETS-Latam FX slides but Brazil's real bolstered by fiscal reform bill

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(Recasts throughout, updates prices, adds quote) * JBS shares plunge after request to annul plea bargain * Brazil govt proposes market-friendly reforms * Chile President Pinera says will not resign - BBC By Agamoni Ghosh and Medha Singh Nov 5 (Reuters) - Latin American currencies broadly weakened on Tuesday after an improvement in service sector activity in the United States fired up the dollar, but Brazil's real outperformed on expectations of new market-friendly reforms. A reading of the ISM services index in the U.S. improved in October, easing some concerns about a slowdown in the world's largest economy and lifting the greenback. MCSI's index tracking currencies in the Latam region fell 0.5% to extend losses from the previous session. Mexico's peso fell to a three-week low, while Chile's peso fell nearly 1% on uncertainty surrounding the country's political stability. Chile's embattled President Sebastian Pinera rejected the notion of resigning and believes he will reach the end of his term in just over two years despite intense anti-government protests that are roiling the country, according to a BBC interview. Latin American stocks fell 0.4% with Brazil's Bovespa coming off record highs. Brazilian food processor JBS dropped about 5% after the country's top prosecutor requested the annulment of plea bargain deals previously signed with former executives of the company. Mexican stocks slid 0.6% with telecommunications group America Movil down 2.6% as HSBC downgraded the stock to "hold" from "buy". BRAZIL REFORMS Brazil's real firmed 0.7% to outperform its Latin American peers on hopes that the government's newly proposed reforms will help bring down the country's mounting fiscal deficit. Economy Minister Paulo Guedes unveiled a bundle of wide-ranging reforms on Tuesday, aimed at cutting spending and changing budget rules in a drive to reduce the government's chronic fiscal deficit. While the proposal was widely expected by economic and political analysts, the approval of the reform is not fully priced in, said Rabobank's Brazil economist Gabriel Santos in a note, indicating that many investors are skeptical that an effective bill will reach the finish line. President Jair Bolsonaro and his economy minister hope the proposals will be approved by next year, building on the momentum from a landmark pension reform that was passed by Congress in September. Latin American stock indexes and currencies at 19:35 GMT Stock indexes daily % change Latest MSCI Emerging Markets 1070.81 0.59 MSCI LatAm 2819.02 -0.39 Brazil Bovespa 108626.95 -0.14 Mexico IPC 43572.96 -0.55 Chile IPSA 4729.99 -1.49 Argentina MerVal 36830.97 -1.201 Colombia IGBC 13499.88 0.98 Currencies daily % change Latest Brazil real 3.9905 0.52 Mexico peso 19.2063 -0.17 Chile peso 748.7 -1.00 Colombia peso 3307 0.39 Peru sol 3.337 -0.15 Argentina peso (interbank) 59.6500 0.09 (Reporting by Agamoni Ghosh and Medha Singh in Bengaluru; Editing by Andrea Ricci)