EEM•Mexico's benchmark stock index .MXX gained 0.4%, and its currency MXN= was muted.
Key Latin American stock indexes and currencies at 14:48:
| MSCI Emerging Markets .MSCIEF | 1641.61 | 0.83 |
| MSCI LatAm .MILA00000PUS | 3027.91 | -0.03 |
| Brazil Bovespa .BVSP | 174752.74 | 0.41 |
| Mexico IPC .MXX | 66648.78 | 0.4 |
| Chile IPSA .SPIPSA | 11013.51 | 0.57 |
| Argentina MerVal .MERV | 3285946.17 | 0.13 |
| Colombia COLCAP .COLCAP | 2265.49 | -0.4 |
| Currencies | Latest | Daily % change |
| Brazil real BRL= | 5.1049 | -0.42 |
| Mexico peso MXN= | 17.4693 | 0.04 |
| Chile peso CLP= | 942.8 | 0.58 |
| Colombia peso COP= | 3207.84 | 0.28 |
| Peru sol PEN= | 3.3967 | 0.1 |
| Argentina peso (interbank) ARS=RASL | 1,499.0 | -0.13 |
| Argentina peso (parallel) ARSB= | 1,545.0 | 0 |
Most Latin American assets gained on Monday, as a pause in the Middle East hostilities sent oil prices sharply lower, boosting risk appetite across global markets.
Oil prices fell to a one-week low after the U.S. and Iran paused strikes over the weekend, reviving hopes for a de-escalation in the conflict and resuming oil shipping through the Strait of Hormuz.
Last week's rally in crude above $100 a barrel had fueled concerns that renewed inflationary pressures could force central banks to maintain a hawkish stance, leading markets to price in a greater chance of a Federal Reserve rate hike.
While analysts still expect the Fed to hold rates, some anticipate hawkish signals in the messaging.
"The statement will be a short one, and avoid the type of forward guidance that Chair Warsh has shown a clear aversion to. But the accompanying communications will probably indicate that hikes are coming should the Iran war drag on," said Enrique Díaz-Alvarez, chief economist at global financial services firm Ebury.
In Latin America, attention will also be on central bank meetings in Colombia and Chile this week.
Colombia's central bank is expected to raise the benchmark rate by 50 basis points, according to LSEG data as policymakers weigh persistent inflation risks, including the potential impact of El Nino-related weather shocks.
The Colombian peso COP= rose 0.3%, while its equities .COLCAP declined 0.4%.
Chile's central bank is expected to keep rates unchanged. The local currency CLP= advanced 0.6%, outperforming its peers, and its stocks .SPIPSA also gained 0.6%.
The broader MSCI Latin American currency index .MILA00000CUS slipped 0.4%, while the stocks equivalent .MILA00000PUS was subdued.
In Brazil, political developments remain in the spotlight after a poll showed on Monday that President Luiz Inacio Lula da Silva was leading Senator Flavio Bolsonaro in a simulated second-round runoff for October's presidential election.
Separately, Finance Minister Dario Durigan said that the dispute with the U.S. on tariffs would likely be resolved after the election, while accusing Bolsonaro of seeking foreign backing.
Among currencies, the Brazilian real BRL= declined the most, slipping 0.4%, while its equities .BVSP rose 0.4%.
The Argentine peso ARS=RASL edged 0.1% lower, while equities .MERV rose 0.1%. A Reuters poll of economists showed that Argentina's economy will grow steadily into next year, while revising inflation estimates for both this year and the next.
