EMERGING MARKETS-Russian rouble lags EM peers after U.S. sanctions

    * Rouble cuts losses after sanctions
    * Turkish holds rates, but doesn't signal tight
    * Brazilian real rises; services activity surges in Feb
    * Brazil's Cia Hering volts on rejecting Arezzo Industria

 (Adds Latam market moves, updates prices)
    By Susan Mathew
    April 15 (Reuters) - Russia's rouble slumped on Thursday,
after Washington announced new sanctions targeting the country's
sovereign debt, while most other emerging market currencies
rose, with Mexico's peso hitting a two-month high. 
    Turkey's lira gave up session gains to trade little
changed after the new central bank governor held rates but shied
away from reaffirming a pledge to tighten policy. The currency
had briefly dipped into the red after the decision.

    The rouble weakened 2% to the dollar in anticipation
of the sanctions, imposed over 'malign actions' including
alleged interference in 2020 U.S. elections, but cut some losses
after the announcement and traded down 0.5% at 76.26 per
    Among other sanctions, the White House on Thursday banned
U.S. financial institutions from participating in the primary
market of Russia's government debt from June 14. Russia's
foreign ministry said it would respond in the near future,
marking a further deterioration in ties between Russia and the
    Analysts note that the move was not as severe as
anticipated, and raises the probability of a 50 basis points
interest rate hike next week.
    "The sanctions are calibrated to be serious but not too
serious. It's serious because it's not just another round of
political sanctions targeting a few officials or blacklisting
companies no one has ever heard of," said Christopher Granville,
managing director, EMEA and global political research at TS
    "But if you just sanction primary issuance, international
investors will continue buying in secondary markets."
    Meanwhile, an index of emerging market currencies
 strengthened 0.2% to hit three-week highs
against a weaker dollar.
    Chile's peso jumped 1.3% as copper scaled
six-week highs, while Mexico's peso rose 0.7%. Brazil's
real rose 0.7% with data showing the country's February
services activity posted its third-biggest surge in a decade.

    But as Brazil's teeters on the brink of recession and
inflation surges above the official year-end target, outlook for
the economy looks bleak, complicated further by the unabated
spread in COVID-19 cases.
    Among stocks, a 28% surge in Cia Hering lifted
Brazil's Bovespa index to three-week highs, after the
apparel retailer rejected an unsolicited tie-up offer from
competitor Arezzo Industria e Comercio.
    Main stock benchmarks in Chile and Colombia
 fell, while most other Latam bourses rose
    Key Latin American stock indexes and currencies at 1430 GMT:
  Stock indexes           Latest   Daily %
 MSCI Emerging Markets    1341.41     0.36
 MSCI LatAm               2389.11     0.79
 Brazil Bovespa         120996.60     0.58
 Mexico IPC              48445.37     0.24
 Chile IPSA               4908.39    -0.38
 Argentina MerVal        47335.64    0.077
 Colombia COLCAP          1319.86    -0.08
      Currencies          Latest   Daily %
 Brazil real               5.6323     0.65
 Mexico peso              19.9461     0.58
 Chile peso                 701.9     1.00
 Colombia peso            3622.78     0.90
 Peru sol                  3.6228     0.22
 Argentina peso           92.7200    -0.04
 For TOP NEWS across emerging markets
    For CENTRAL EUROPE market report, see
    For TURKISH market report, see
    For RUSSIAN market report, see

 (Reporting by Ambar Warrick in Bengaluru; Additional reporting
by Tom Arnold in London; Editing by Marguerita Choy and
Catherine Evans)