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EMERGING MARKETS-Latam stocks down, Brazil shares up on hopes of reform

By Susan Mathew May 27 (Reuters) - While most Latin American stocks weakened on Monday, Brazil shares rose sharply after a pro-government march mounted pressure on Congress to pass reforms seen as crucial to the economy.

Sao Paulo's Bovespa stock index jumped 1.2% on broad-based gains. Volumes were limited, however, by market holidays in Britain and the United States.

On Sunday, supporters of Brazilian President Jair Bolsonaro marched in support of his agenda and against lawmakers whom they see standing in his way of passing reforms such as the overhaul of the pension system.

The supporters blamed Brazil's corrupt political system as a hindrance to Bolsonaro in making progress on his legislative and economic agenda, and the march came amid polls showing declining approval ratings for the government while the pension reform makes its way through congress.

Mining major Vale was the biggest boost, tracking a surge in iron ore prices.

Retailer Magazine Luiza was among the top gainers after it upped its offer for online shoe retailer Netshoes by $1 to $93.2 million.

Meanwhile, card payment processor Cielo dropped 5.5% and slid to the bottom of the index after it canceled previously provided net profit guidance for 2019.

The real was flat at 1426 GMT, having risen up to 0.5% in early trade, while currencies in Mexico, Chile and Argentina slipped between 0.1% and 0.45% against a stronger dollar.

Stocks in Mexico fell 0.3% and looked set to extend losses to a fifth straight session, while those in Colombia shed 0.2% as the U.S.-China trade war still loomed, albeit without any significant fresh developments over the weekend.

Key Latin American stock indexes and currencies at 1426 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 988.54 0.19 MSCI LatAm 2603.36 0.82 Brazil Bovespa 94629.26 1.23 Mexico IPC 42476.73 -0.33 Chile IPSA 4867.29 -0.29 Argentina MerVal - - Colombia IGBC 12114.39 -0.24 Currencies Latest Daily % change Brazil real (BRL-) 4.0242 -0.03 Mexico peso 19.0560 -0.12 Chile peso 695.1 -0.14 Colombia peso - - Peru sol 3.3450 0.03 Argentina peso 44.90 -0.45 (Reporting by Susan Mathew in Bengaluru Editing by Matthew Lewis)