for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

EMERGING MARKETS-Latam FX muted as COVID-19 resurgence weighs on sentiment

    * Optimism over copper helps Chilean, Peruvian FX
    * Virus resurgence in Brazil causes concern

 (Adds comments, updates prices throughout)
    By Ambar Warrick and Shreyashi Sanyal
    April 7 (Reuters) - Most Latin American currencies edged
lower on Wednesday as a second wave of COVID-19 infections in
Brazil and other countries in the region 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 fell against the dollar, while Chile's
peso and the Peruvian sol rose on optimism over
copper prices. 
    Virus-related daily deaths in Brazil climbed above 4,000 on
Tuesday, stoking fears that Latin America's largest economy was
on track to surpass the grim numbers reported by the United
States in January.
    Still, Brazilian 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 its 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.
Copper price gains have helped the peso somewhat offset local
economic ructions, as the country shut its borders recently due
to a rise in COVID-19 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, referring to the
report released by the U.S. Labor Department on Friday.
    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 such a move 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 afternoon trade.
    Key Latin American stock indexes and currencies: 
    
    Stock indexes             Latest    Daily %
                                         change
 MSCI Emerging Markets         1338.08     -0.66
                                        
 MSCI LatAm                    2349.35      0.33
                                        
 Brazil Bovespa              118145.13      0.55
                                        
 Mexico IPC                   47975.91     -0.02
                                        
 Chile IPSA                    4849.22     -0.24
                                        
 Argentina MerVal             50355.95     0.055
                                        
 Colombia COLCAP               1332.24       0.6
                                        
                                                
       Currencies             Latest    Daily %
                                         change
 Brazil real                    5.6152     -0.27
                                        
 Mexico peso                   20.2085     -0.21
                                        
 Chile peso                      713.7      0.53
                                        
 Colombia peso                 3652.79     -0.48
 Peru sol                        3.608      0.69
                                        
 Argentina peso                92.3300     -0.04
 (interbank)                            
                                        
 Argentina peso                    136      2.94
 (parallel)                             
                                        
 
 (Reporting by Ambar Warrick and Shreyashi Sanyalin Bengaluru;
Editing by Kirsten Donovan and Paul Simao)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up