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EMERGING MARKETS-Latam FX muted as resurgence in virus cases weighs

    * Optimism over copper helps Chilean, Peruvian FX
    * Virus resurgence in Brazil a cause of concern

    By Ambar Warrick
    April 7 (Reuters) - Latin American currencies marked small
gains on Wednesday as the dollar appeared to have stabilized
after recent losses, although a second wave of regional COVID-19
infections weighed on sentiment. 
    The U.S. dollar hovered around two-week lows with the
weakness helping spur some gains in emerging markets. 
    Brazil's real was largely flat to the dollar, while
Chile's peso and the Peruvian sol rose on optimism
over copper prices. 
    Virus-related deaths in Brazil, Latin America's largest
economy, are forecast to surpass the worst of a record January
wave in the United States, as daily fatalities climbed above
4000 a day.
    Still, the country's officials expect the economy to be back
on track in two to three months on the heels of an accelerating
vaccination program.
    Brazil's initial difficulties with procuring vaccinations,
as well as concerns over mounting fiscal debt have seen the real
widely underperform most of its emerging market peers this year.
    Chile's peso was supported by data showing a large trade
surplus in March, with copper exports rising substantially.
Gains in copper prices have helped the peso somewhat offset
local economic ructions, as the country shut its borders
recently due to a rise in virus cases.
    "While concerns remain that shipments could be delayed, the
risk to metals supply likely remains mitigated. In turn,
reflationary tailwinds remain the primary driver supporting LME
metals, particularly following the strong U.S. jobs report,"
analysts at TD Securities wrote in a note.
    Data showing a recovery in China's service sector has also
improved the outlook for copper, given that the country is the
world's top importer of the red metal.
    Colombia's peso rose slightly on gains in oil prices.

    Mexico's peso and Argentina's peso were both
flat. Both countries on Wednesday called for debt relief for
middle income countries, saying the proposal could prevent a
debt crisis emerging on the back of the pandemic.
    Emerging markets are expected to have a mixed recovery from
the pandemic, with economies in Asia expected to outpace their
peers.
    Latam stocks were muted in early trade.
    Key Latin American stock indexes and currencies:
    
                              Latest      Daily % change
 MSCI Emerging Markets         1338.90               -0.59
                                        
 MSCI LatAm                    2347.80                0.26
                                        
 Brazil Bovespa              118071.04                0.49
                                        
 Mexico IPC                          -                   -
                                        
 Chile IPSA                    4846.16                -0.3
                                        
 Argentina MerVal                    -                   -
                                        
 Colombia COLCAP               1323.19               -0.09 Currencies             Latest      Daily % change
 Brazil real                    5.5920                0.15
                                        
 Mexico peso                   20.1763               -0.05
                                        
 Chile peso                        715                0.35
                                        
 Colombia peso                 3632.89                0.06
 Peru sol                        3.626                0.20
                                        
 Argentina peso                92.3300               -0.04
 (interbank)                            
                                        
 

 (Reporting by Ambar Warrick in Bengaluru; Editing by Kirsten
Donovan)
  
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