EMERGING MARKETS-LatAm stocks head for longest losing streak since 2019

Meanwhile, Colombian stocks `.COLCAP` rose 0.09%, extending their strong run this week as investors bet that the new administration under President Abelardo De La Espriella would be able to restore confidence in the economy. However, the Colombian economy continues to face challenges due to higher fiscal deficits, prompting downgrades from credit rating agencies in recent months, while the earthquake earlier this week could add further pressure. "The earthquake could be a bit of a setback for Colombia. They've already had a fragile economy. It could see further weakness in the months ahead," said Michael Dehal, senior portfolio manager at Dehal Investment Partners, Raymond James. Mexican equities `.MXX` climbed 0.36%, while its peso `MXN=` traded 0.13% higher. Dehal noted that the outlook for Mexico would depend heavily on its trade negotiations with the United States, given the economy's strong reliance on exports to its northern neighbor. Peruvian equities `.MXNUAMPESCPGPE` fell 0.23%, while the Peruvian sol `PEN=` gained 0.21% versus the dollar. "Peru's external backdrop has strengthened dramatically on the back of the rally in gold and copper," BofA said. Later in the day, MSCI will announce the results of a quarterly rebalance of its indexes. Key Latin American stock indexes and currencies at 19:36 GMT: - MSCI Emerging Markets `.MSCIEF`: 1681.09, 0.94 - MSCI LatAm `.MILA00000PUS`: 2950.53, -0.6 - Brazil Bovespa `.BVSP`: 167643.94, -0.14 - Mexico IPC `.MXX`: 65802.19, 0.36 - Chile IPSA `.SPIPSA`: 10970.7, -1.42 - Argentina MerVal `.MERV`: 3006085.49, -0.51 - Colombia COLCAP `.COLCAP`: 2425.58, 0.09 Currencies: - Brazil real `BRL=`: 5.1763, -0.27 - Mexico peso `MXN=`: 17.0579, 0.13 - Chile peso `CLP=`: 913.45, -0.03 - Colombia peso `COP=`: 3139.91, -0.35 - Peru sol `PEN=`: 3.3707, 0.21 - Argentina peso (interbank) `ARS=RASL`: 1,491.5, 0.00 - Argentina peso (parallel) `ARSB=`: 1,520.0, 1.94 Brazil's benchmark Bovespa `.BVSP` dipped 0.14%, steadying after its biggest one-day drop in five months, while the real `BRL=` slipped 0.27% a day after marking its steepest daily decline in two months. Uncertainty over the country's public finances and inflation has been a key concern for investors as the country heads towards elections later this year that polls show could be a tight race. Central bank policymakers have flagged that sticky price pressures, fueled by President Luiz Inacio Lula da Silva's policies, have left no room for interest rate cuts. A victory for the left-leaning president later this year could further fuel those concerns. "Brazil was going to be a story of rate cutting to drive the market because real rates are super high....they haven't been able to cut rates that much, and the market's been a little disappointed," said Todd McClone, portfolio manager at William Blair. Against this backdrop, the country's finance and planning ministries have moved to advance spending control mechanisms through a bill before Congress on an unrelated matter, sources told Reuters. Latin American equities were on track for their longest losing streak since 2019 on Wednesday as weaker oil prices and a firmer dollar weighed on sentiment, while Brazilian assets weakened as investors mulled the outlook for upcoming elections. The MSCI index of Latin American stocks `.MILA00000PUS` dipped 0.6%, putting it on course for the ninth straight session of losses, while the region's currencies gauge `.MILA00000CUS` fell 0.37%. Investors seeking alternatives to U.S. assets have largely favored technology-focused bourses in Asia, such as South Korea and Taiwan, leaving Latin America behind as a destination for diversification flows. "We continue to see outflows from LatAm-dedicated global funds. Investors continue to rotate into tech-heavy emerging markets," BofA Global strategists wrote. The pressure on the region was compounded by softer oil prices after the Organization of the Petroleum Exporting Countries lowered its world oil demand growth forecast for 2026. Fluctuations in oil prices have become an increasing headwind for the region's assets, which many investors have used as a hedge rather than a core portfolio allocation because of their significant commodity exposure.

EMERGING MARKETS-LatAm stocks head for longest losing streak since 2019

Moves in Colombia, Mexico and Peru

Brazil election jitters weigh on assets

LatAm stocks head for longest losing streak since 2019

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