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EMERGING MARKETS-Latam stocks dip on trade woes; Brazil FX firms on strong Q3 GDP

By Ambar Warrick and Susan Mathew

(Updates prices, adds asset manager's comment) * Brazil real surges after better-than-expected GDP * Traders cautious after Trump says no trade deal deadline * Latam is poised for economic growth - asset manager By Ambar Warrick and Susan Mathew Dec 3 (Reuters) - Latin American stock markets fell on Tuesday, with Mexican shares touching a two-month low, as comments by U.S. President Donald Trump sparked fears of a delay in resolving the Sino-U.S. trade war. Global equities dropped after Trump said a trade deal with China might be delayed until after the November 2020 U.S. presidential election. Possible U.S. duties on French goods also kept markets on edge. Investors had earlier expected an interim trade deal between Washington and Beijing by mid-November, but the prospect of a delayed conclusion now opens the door to a further escalation in the tensions that have dogged risk assets for more than a year. Tuesday's comments come after Trump restored metal tariffs on Brazil and Argentina on Monday, taking officials there by surprise. Argentina and Brazil plan to meet this week to discuss the tariffs and are expected to meet members of the Mercosur trade bloc on Wednesday. An index of Latin American stocks snapped a four-day winning run and was down 0.2%. Shares in Colombia , Brazil, Mexico and Chile gave up between 0.8% and 0.1%, while Argentine equities lost 2.3%. "Trade headlines are certainly making for cautious trade in markets ... the mood has certainly become less positive," said William Jackson, chief emerging markets economist at Capital Economics. Regional currencies fared slightly better, with an index of local units rising about 0.2% as the dollar held declines following disappointing manufacturing data from the United States on Monday. Brazil's real firmed 0.3% after data showed the country's economy expanded faster than expected in the third quarter. Upward revisions to GDP figures for the first two quarters this year also meant that Latin America's largest economy steered further clear of recession than previously thought. Latam is poised for growth after years of underperformance, Luiz Ribeiro, manager of the Latin America Equities fund at asset manager DWS Group, told the Reuters Global Markets Forum on Tuesday, forecasting regional growth would rebound in 2020 to near 2%. Mexico's peso traded flat amid a push back by the Mexican government against U.S. attempts to subject Mexico to oversight of its labor market. President Andres Manuel Lopez Obrador said the Mexican Senate should be consulted before changes to a new North American trade deal are signed off. Key Latin American stock indexes and currencies at 1930 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1036.23 -0.38 MSCI LatAm 2658.21 -0.18 Brazil Bovespa 108812.52 -0.11 Mexico IPC 42377.26 -0.39 Chile IPSA 4491.53 -0.22 Argentina MerVal 32691.67 -2.258 Colombia COLCAP 1586.14 -0.76 Currencies Latest Daily % change Brazil real 4.2078 0.13 Mexico peso 19.5790 -0.01 Chile peso 802.6 0.07 Colombia peso 3500.4 0.07 Peru sol 3.389 0.06 Argentina peso 59.9100 0.10 (interbank) (Additional reporting by Lisa Pauline Mattackal and Aaron Saldanha ion Bengaluru; Editing by Giles Elgood)