EMERGING MARKETS-Peru's sol recovers; Latam stocks rally

 (Updates prices)
    By Ambar Warrick and Susan Mathew
    July 20 (Reuters) - Most Latin American currencies recouped
some of the previous session's severe losses on Tuesday, with
Peru's sol erasing session losses spurred by socialist candidate
Pedro Castillo's confirmation as president of the country.
    The sol rose 0.3% as copper prices steadied. Peru is
the world's second largest producer of the red metal, after
Chile, where the peso snapped a three-session losing
streak, rising from a near-seven-month low.
    The sol had fallen to 3.9633 to the dollar after Castillo's
confirmation, coming close to a record low of 3.9871 after
dropping 1.4% on Monday, its worst day in more than a month.
    Castillo has pledged to redraft the constitution and hike
taxes on mining firms, although he has taken a more moderate
line in recent weeks and hinted at a more market-friendly
    A rise in cases of the infectious Delta variant of the
coronavirus sparked a sharp selloff across most risk-driven
assets on Monday, on fears that a global economic recovery could
be damaged. 
    "Growth concerns have been building in recent weeks, and it
was only a matter of time before the relentless march lower in
global yields started to be seen as a reflection of these
underlying anxieties," Ned Rumpeltin, European head of foreign
exchange strategy at TD Securities, wrote in a note.    
    The losses pulled Latam assets further off recent peaks,
eroding gains made on hawkish central bank moves and improving
economic indicators. Latam assets have outperformed their
broader emerging market peers so far in 2021. 
    Brazil's real tacked on 0.6%, after three straight
sessions of losses as the dollar moved slightly away from
over three-month highs.
    As Brazil's economy attempts to recover from the coronavirus
pandemic, the government said it planned to introduce new
welfare programs this year, after the current COVID-related
program expires in October.
    Mexico's peso underperformed, extending a near 1%
loss from Monday as COVID cases continued to rise in the
country, increasing the chances of a third wave.
    Joining a global stocks rally after a bruising start to the
week, Latam stocks rose 0.4%, rising from
two-month lows. 
    Brazil's Bovespa index rose 0.6% after losing 3%
over the last three sessions, while Argentina's Merval
rose for the first time in five sessions. 
    Colombian markets were closed for a holiday.
    Key Latin American stock indexes and currencies:
   Stock indexes           Latest    Daily %
 MSCI Emerging Markets      1311.99     -0.4
 MSCI LatAm                 2507.40     0.38
 Brazil Bovespa           125177.55     0.63
 Mexico IPC                49379.58     0.58
 Chile IPSA                 4290.00     1.36
 Argentina MerVal          63020.35    1.428
      Currencies           Latest    Daily %
 Brazil real                 5.2176     0.57
 Mexico peso                20.1118    -0.20
 Chile peso                   757.8     0.22
 Peru sol                    3.9432    -0.08
 Argentina peso             96.3300    -0.02
 (Reporting by Ambar Warrick; Editing by Edmund Blair and Leslie