In Brazil, the Bovespa index .BVSP rose 0.3%, heading for a sixth straight session of gains, while the real BRL= slipped 0.2% as investors assessed new inflation data.
Brazil's annual inflation slowed more than expected in the 12 months through mid-August, as consumer prices posted their first monthly decline in a year, adding to signs that price pressures are easing.
"Headline inflation rates generally fell in August, but inflation is still likely to end the year above target across much of the region," said Kimberley Sperrfechter, senior Emerging Markets economist at Capital Economics.
"That’s likely to limit the room for further easing in Brazil."
Political uncertainty also remained on investors' radar ahead of Brazil's October election. While the contest offers another sharp left-versus-right choice, analysts see little difference in the fiscal outlook, with debt expected to rise under either candidate.
Leftist President Luiz Inácio Lula da Silva holds a narrow lead in opinion polls over Flávio Bolsonaro.
Mexico's benchmark .MXX index gained 0.4%, also on track for a sixth consecutive day of advances, while the peso MXN= eased 0.1%.
Despite Wednesday's decline, the peso remains near its strongest level since 2024 and has moved past 17 per dollar, making it among the best-performing emerging-market currencies this year.
But the stronger currency has raised concerns for Mexico, where more than 80% of exports go to the U.S., as it squeezes margins for some exporters.
A Reuters poll of analysts showed that fiscal concerns continue to cloud the outlook for Brazilian equities, while expectations for Mexican stocks have been trimmed because of weak economic growth.
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