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EMERGING MARKETS-Most Latam stocks, FX fall amid growth and trade concerns

By Susan Mathew

(New throughout, updates prices, market activity and comments) By Susan Mathew Sept 23 (Reuters) - Latin American currencies slipped on Monday against a stronger dollar, and regional stocks also declined on mounting recession fears and nagging worries about the U.S.-China trade war. Although Washington and Beijing labeled their two-day talks last week as "productive" and "constructive," a deal appeared elusive after Chinese officials unexpectedly canceled a visit to U.S. farms on Friday. Focus now turns to high-level talks planned for October. The dollar gained after the euro fell following dismal business survey readings from the euro zone. Brazil' real fell 0.5%, while Mexico's peso inched 0.1% lower. On Thursday, Mexico's central bank is seen cutting its benchmark interest rate by 25 basis points for a second time this year, a Reuters poll showed. Chile's currency declined 0.6%, hurt by falling prices of its main export, copper, while Colombia's peso fell 0.7% to its lowest in nearly three weeks. Colombia's central bank board held its benchmark interest rate steady at 4.25% again, as expected, and lifted its annual growth prediction closer to the government target. Analysts at Goldman Sachs expect the rate-cutting cycle in emerging markets to persist through 2020 in Russia and Mexico, and through the end of 2019 in Brazil. This should support equities in those countries, they wrote in a note. Main risks they cited were possible political developments in Brazil or Mexico or additional sanctions on Russia from the United States or European Union. Recession and trade fears pressured Latam stocks on Monday, with Chile stocks down almost 1 percent and Brazil stocks down 0.2%. Planemaker Embraer was among the worst performers on Brazil's main index, down 1.8% following a Reuters report that Boeing is set to face a European Union antitrust investigation into its bid for a controlling stake in Embraer's commercial aircraft arm. Argentine shares slid more than 3% for their biggest decline in three weeks, while the currency gave up close to half a percent. A group of Argentina's biggest bondholders are to meet with the treasury minister on Monday to hear how the government plans to respond to its latest financial crisis. Key Latin American stock indexes and currencies at 1953 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1015.19 -0.6 MSCI LatAm 2678.33 -0.38 Brazil Bovespa 104563.60 -0.24 Mexico IPC 43477.13 0 Chile IPSA 5025.21 -0.94 Argentina MerVal 29058.70 -3.332 Colombia IGBC 12967.77 0.02 Currencies Latest Daily % change Brazil real 4.1719 -0.45 Mexico peso 19.4913 -0.23 Chile peso 720.9 -1.02 Colombia peso 3437.25 -0.65 Peru sol 3.355 0.09 Argentina peso 56.9200 -0.44 (interbank) (Reporting by Susan Mathew in Bengaluru; Editing by David Gregorio)