Elsewhere, Moody's upgraded Pakistan's sovereign rating to B3 from Caa1, citing improved governance and reduced external vulnerability risks.
Mexico growth and inflation are in focus
In Latin America, MSCI's regional stock index .MILA00000PUS rose 0.7%, while its currency index .MILA00000CUS gained 0.2%.
Mexican stocks .MXX edged 0.5% higher, while the peso MXN= weakened 0.4%. Mexico's economy rebounded in the second quarter from the prior three months, recording its strongest growth since early 2022.
Annual inflation in Latin America's second-largest economy accelerated to 3.26% in the first half of August from 3.10% a month earlier, though it remained within the Bank of Mexico's 3%, plus or minus one percentage point, target range.
"Mexico's economy should be performing far better than it has, given its geographic position, privileged U.S. market access and demographic dividend," Geronimo Mansutti, senior economist at Tellimer Research, said in a note on Mexico's longer-term economic performance.
"The heightened uncertainty from the protectionist and mercurial Trump administration also does not help."
Investors were also watching failed U.S.-Canada trade talks after Washington imposed 50% tariffs on some Canadian goods on Saturday, following the failure of the two allies to reach a deal.
The talks are separate from, but politically intertwined with, the broader 2026 review of the U.S.-Mexico-Canada Agreement.
Brazil stocks rise on election poll and YDUQS jumps
Brazilian stocks .BVSP jumped 0.8%, while the real BRL= slipped 0.2%.
Brazilian President Luiz Inacio Lula da Silva and right-wing Senator Flavio Bolsonaro are in a technical tie in a potential runoff ahead of October's presidential election, a Nexus poll commissioned by lender BTG Pactual showed.
The close runoff scenario highlights the potential for election-related volatility in Brazil, as investors weigh the candidates' differing approaches to fiscal policy, regulation and relations with the U.S.
Shares in Brazilian education company YDUQS YDUQ3.SA jumped about 13% after the firm said it was in talks with Nasdaq-listed Afya AFYA.O over a potential business combination.
LatAm markets mixed as investors await Iran sanctions details
Latin American stocks rose while currencies were mixed on Monday as investors awaited details of threatened U.S. sanctions on Iran and assessed their potential spillover effects on emerging markets, while Mexico's economic data also kicked off a busy week for the region.
U.S. Treasury Secretary Scott Bessent was due to hold a press conference at 1 p.m. EDT (1700 GMT), after pledging the "greatest financial offensive ever" against Iran and its trading partners. Tehran, in response, threatened to halt Gulf oil exports should what it described as an "economic war" continue.
Pakistan's army chief was visiting Tehran on a mediation mission, while Washington prepared for tougher measures.
China's relationship with Iran added another potential source of friction with Washington. Bessent has urged Beijing to support U.S. pressure on Tehran as China has long been Iran's largest oil customer.
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