EMERGING MARKETS-Weak data weighs on Brazil's real; Latam shares caught in global stocks rout

    * Shares in Brazil, Mexico, Chile slide over 2%
    * Mexican 2020 GDP slumps; Q4 better than expected
    * Most Latam stocks and currencies eye weekly losses

 (Updates prices)
    By Ambar Warrick and Susan Mathew
    Jan 29 (Reuters) - Brazil's real led losses across Latin
American currencies on Friday after data highlighted weakness in
the region's largest economy, while regional shares were
hammered by a global rout in stock markets.
    The real fell 0.6% versus the dollar after central
bank figures showed national debt and the public sector deficit
ended last year at record highs.
    Separate readings showed confidence in Brazil's services
sector fell in January, while annual producer price inflation 
also ended last year at a historic high.

    The data came in the wake of spiking coronavirus cases and
deaths in the Americas, with most Latam countries racing to
distribute vaccines.
    Mexico's peso erased session gains to trade down 0.6%
and was set to end the week about 2% lower - its worst weekly
decline since September. 
    Data showed Mexico's economy suffered its worst contraction
since the Great Depression, although fourth-quarter GDP beat
    Spiking COVID-19 cases in Mexico, coupled with uncertainty
over the rollout of a vaccine program have hurt the peso in
recent weeks. But the Mexican economy is expected to eventually
benefit from a bounceback in its biggest trading partner, the
United States.
    "In addition to global risk sentiment the decisive exchange
rate driver is likely to be the prospect for the U.S. economy,
and thus the decision on the U.S. fiscal package," Elisabeth
Andreae, FX and EM analyst at Commerzbank wrote in a note.
    "If prospects there improve this is likely to support the
peso as the export orientated country is likely to benefit via
its close ties with the United States." 
    Colombia's peso slipped 0.3%. The country's central
bank held the benchmark interest rate steady at 1.75% for the
fourth consecutive month at its Friday meeting, as expected by
    Chile's peso was set to end the week with a 0.9%
drop, as weakness in the copper market- Chile's top export- hurt
the currency.
    Chile's central bank held interest rates at ultra-low levels
this week, which is also expected to weigh on the peso.
    Stocks in Latin America slumped, with those in Mexico
sliding 2.6%, looking set to post their worst day since June.
After a day's rise, Brazil's Bovespa index resumed its
losing streak, down for the seventh session in eight. 
    Globally, stock markets have been roiled by a battle 
between hedge funds and retail investors, and a dispute over
COVID-19 vaccine supply in Europe.
    Latin American stock indexes and currencies at 1904 GMT:
  Stock indexes           Latest   Daily %
 MSCI Emerging Markets    1330.24    -1.51
 MSCI LatAm               2297.25     -2.7
 Brazil Bovespa         115848.37    -2.55
 Mexico IPC              43134.34    -2.59
 Chile IPSA               4288.76    -2.77
 Argentina MerVal        48554.82   -2.167
 Colombia COLCAP          1357.44    -0.71
      Currencies          Latest   Daily %
 Brazil real               5.4660    -0.55
 Mexico peso              20.3816    -0.74
 Chile peso                 732.2     0.76
 Colombia peso            3567.63    -0.25
 Peru sol                  3.6357     0.19
 Argentina peso           87.3000    -0.10
 (Reporting by Ambar Warrick and Susan Mathew in Bengaluru;
Editing by Kirsten Donovan and Grant McCool)