EMERGING MARKETS-Colombia's peso lags peers as central bank launches $4 billion reserve program

Equities in Brazil .BVSP slipped 0.2%, weighed by losses in miner Vale VALE3.SA that slipped 2.7%, as iron ore prices slid for a seventh straight session on weak Chinese demand.

Investors are awaiting Brazil's central bank decision on Wednesday, with economists polled by Reuters expecting a fourth consecutive interest-rate cut. The Brazilian real BRL= was subdued.

Manufacturing activity in the region's largest economy contracted in July, data showed on Monday.

Political developments are also in focus in Latin America's largest economy, after a poll showed right-wing Senator Flavio Bolsonaro narrowing the gap with President Luiz Inacio Lula da Silva ahead of the October presidential election.

An interest-rate decision from Mexico's central bank is also expected later in the week. The Mexican peso MXN= firmed, while its stocks .MXX declined 0.5%.