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EMERGING MARKETS-Latam currencies slide on COVID-19 vaccine worries

    * Brazil real biggest decliner among Latam peers
    * Mexican peso falls for second straight day 
    * IMF sees worsening outlook for many emerging markets 
    * Brazilian e-commerce stocks lift Bovespa index 

 (Updates prices throughout; adds bullets, comments)
    By Shreyashi Sanyal
    Oct 13 (Reuters) - Latin American currencies fell on Tuesday
as global risk sentiment took a hit from Johnson & Johnson's
 move to pause its COVID-19 vaccine trials and on a
worsening emerging market growth outlook from the International
Monetary Fund.     
    U.S. healthcare conglomerate J&J paused clinical trials of
its coronavirus vaccine candidate due to an unexplained illness
in a study participant, delaying one of the highest profile
efforts to contain the global pandemic. 
    "Though a pause in a trial – this time due to 'an
unexplained illness in a study participant' – isn't exactly out
of the ordinary, it still dealt a blow to the market's faint,
naive hopes of a vaccine arriving this side of Christmas," said
Connor Campbell, financial analyst at Spreadex in London.     
    Brazil's real led declines among currencies in
Latin America, down about 1% as markets reopened following a
public holiday on Monday. 
    Concerns about public finances in Latin America's biggest
economy lingered, with rising doubts if Brazil can finance its
new fiscal program without breaking the government's spending
cap. 
    The Mexican peso fell for the second straight day,
weakening 0.7%, while stocks in the region dropped 0.4%. 
    The IMF said on Tuesday emerging markets other than China
will see a 2020 contraction of 5.7%, worse than the 5.0%
predicted in June.
    Strategists at UBS expect an emerging markets recovery to be
dependent on "successful development and distribution of
COVID-19 vaccines, continued monetary and fiscal accommodation
worldwide, and an uptrend in commodity prices."
    Emerging markets will be sensitive to news around the Nov. 3
U.S. presidential election, with analysts citing a Democratic
victory as the most favorable outcome for EM currencies. 
    A stronger dollar on the day also knocked down Latin
American countries, with Colombia's peso falling 0.8% and
the Chilean peso weakening 0.2%. 
    The MSCI's index for Latin American equities
fell 0.3%, with Brazil's Bovespa bucking the downward
trend to rise 0.8%. 
    Brazilian e-commerce companies including B2W, Via
Varejo and Magazine Luiza gained between
2% and 7%, rising the most among Sao Paulo stocks.
    Amazon.com Inc on Tuesday rolled out its Prime Day
event in Mexico and for the first time in Brazil, but the
world's biggest online retailer has been struggling to keep up
with local rivals.
    In other parts of South America, Venezuela is ramping up its
production and export of coal to European nations, according to
export figures and vessel tracking data, as it seeks new sources
of foreign currency amid tightening U.S. sanctions aimed at
toppling President Nicolas Maduro.
    Key Latin American stock indexes and currencies at 1933 GMT:
    
          Stock indexes                   Latest   Daily %
                                                   change
 MSCI Emerging Markets                    1136.35    -0.07
 MSCI LatAm                               1912.94    -0.33
 Brazil Bovespa                          98259.50      0.8
 Mexico IPC                              38181.54    -0.42
 Chile IPSA                               3655.14    -0.61
 Argentina MerVal                        46007.18    0.329
 Colombia COLCAP                          1166.87    -1.94
                                                          
              Currencies                  Latest   Daily %
                                                   change
 Brazil real                               5.5739    -0.86
 Mexico peso                              21.3563    -0.61
 Chile peso                                 797.6    -0.01
 Colombia peso                               3860    -0.95
 Peru sol                                  3.5907    -0.14
 Argentina peso (interbank)               77.4000    -0.32
                                                   
 Argentina peso (parallel)                    162     3.09
                                                   
 
 (Reporting by Shreyashi Sanyal in Bengaluru; Editing by David
Gregorio and Richard Chang)
  
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