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EMERGING MARKETS-Latam FX, stocks lose steam after rally but set for weekly gains

    * Latam stocks set for best week in five months 
    * Brazilian real outperforms Latam peers for the week
    * Oil-linked currencies make hefty gains during the week

    By Shreyashi Sanyal
    Nov 6 (Reuters) - Latin American currencies and stocks lost
some steam on Friday after rallying all through the week,
benefiting from an upbeat mood in emerging markets as Democratic
candidate Joe Biden inched close to winning the U.S.
presidential vote.  
    Currencies in Latin America including the Mexican peso
 and some Asian currencies have gained through the week as
they are seen as benefiting from the potential departure of
President Donald Trump from the White House. 
    The peso, which was particularly hit by the Trump
administration's hard line on trade and drive to keep jobs in
America, shed 0.5% on Friday, falling for the first time in four
sessions. The currency is still set to rise nearly 2% this week.
    Brazil's real weakened 0.1% after gaining
sharply in the last two sessions resulting in the currency
rising 3.5% so far in the week, outperforming its Latin American
peers. 
    The real was buoyed by general optimism in emerging markets
about a Biden victory and encouraging data from its industrial
and services sectors through the week. 
    "The prospect of Joe Biden winning the U.S. Presidential
elections has buoyed sentiment in financial markets and the real
was able to benefit from that," said You-Na Park-Heger, FX and
emerging markets analyst at Commerzbank.
    "Despite the fact that Biden becoming President would not
necessarily be beneficial for Brazil, as the Brazilian President
Jair Bolsonaro considers himself an ally of Donald Trump...
however, for now the move in USD-BRL is dominated by general
market sentiment."
    As more votes were counted from battleground states in the
U.S. election, investors also considered the prospect of a
divided Congress which has boosted expectations that the burden
of economic stimulus over the months ahead would remain with the
Federal Reserve funneling money into the financial system.
    The more bonds the Fed buys, the more it tends to trickle to
higher-yielding emerging markets like Mexico, Indonesia
or South Africa.
    A jump in commodity prices recently, including oil, has
helped currencies of Colombia and Russia. The
Russian rouble is, however, expected to weaken if Trump loses
the presidency.      
    The MSCI's index for emerging market stocks and
its Latin American counterpart are set for their
best weekly gains in five months. The Latam stocks index is up
8.7% this week. 
    
    Key Latin American stock indexes and currencies at 1335 GMT:
    
             Stock indexes                     Latest   Daily %
                                                        change
 MSCI Emerging Markets                         1169.45     0.28
 MSCI LatAm                                    1975.70    -0.32
 Brazil Bovespa                               99910.55    -0.83
 Mexico IPC                                          -        -
 Chile IPSA                                    3695.39    -0.23
 Argentina MerVal                                    -        -
 Colombia COLCAP                                     -        -
                                                               
                Currencies                     Latest   Daily %
                                                        change
 Brazil real                                    5.5456    -0.02
 Mexico peso                                   20.7650    -0.46
 Chile peso                                      761.2    -0.70
 Colombia peso                                 3759.66    -0.21
 Peru sol                                       3.5898     0.11
 Argentina peso (interbank)                    79.0900    -0.08
                                                        
 Argentina peso (parallel)                         153     5.23
 

 (Reporting by Shreyashi Sanyal in Bengaluru; editing by Emelia
Sithole-Matarise)
  
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