Latin American assets fall as oil surge, rising yields unsettle investors

The MSCI Latin America equities index was down 0.6%, while a regional currency gauge edged 0.2% lower.

Latin American equities, with their heavy exposure to commodity-linked companies, have recently underperformed broader emerging markets as investors favored Asian technology stocks, seen as the biggest beneficiaries of the resurgent interest in AI-related names.

The region's major copper exporter, Chile, saw its currency ease 0.7%, as copper prices fell on Tuesday. Central bank data showed the Andean economy was flat in the second quarter from the previous quarter, missing market expectations.

Brazil's Bovespa was flat, while the real fell 0.3%. Colombia's peso gained 1.3%, while the COLCAP equity index was also little changed.

Colombia's economy grew 3.5% in the second quarter from a year earlier and expanded 1.3% from the previous quarter.