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EMERGING MARKETS-Chile's peso leads weekly losses on Chinese copper concerns

    * Chile's peso down nearly 3% this week 
    * Peru cenbank hikes interest rate by 50bps
    * Mexican industrial production rises, as do Brazil retail
sales
    * LATAM Airlines slumps 8%

 (Adds details, updates prices)
    By Susan Mathew and Ambar Warrick
    Sept 10 (Reuters) - Chile's peso lagged its Latin American
peers this week as a sharp drop in Chinese copper imports
triggered concerns over waning demand in Chile's top export
destination, while Brazil's real fell more than 1% on concerns
over political unrest.
    The peso rose 0.6% on Friday, but it has lost nearly
3% this week after data released on Tuesday showed Chinese
copper imports in August had plunged 41% from a year earlier.

    Exports to China are a key source of foreign exchange for
Chile and an economic slowdown in the world's largest economy
could spill over to Latin America.
    Brazil's real fell 0.4%, and was set for a weekly
loss of more than 1% as investors weighed improving economic
data against rising concerns over political unrest in the
country. 
    President Jair Bolsonaro stepped back from his feud with the
Supreme Court over its authorisation of investigations of him
and his allies. He said a truckers' strike in his support, which
had disrupted routes for export items, would end on Sunday. 
    Data showed Brazilian retail sales rose in July, while
Economy Minister Paulo Guedes also outlined a rosier outlook for
Latin America's largest economy in 2022.

    Most other Latin American currencies were also set for
weekly losses, as concerns over slowing global economic growth
sapped sentiment. 
    Losses in Peru's sol were limited after the central
bank hiked its benchmark interest rate by 50 basis points to 1%.
This is the second rate hike in a row as Peru battles a
post-pandemic pick-up in inflation. 
    The bank said Thursday's hike was not necessarily the start
of a hiking cycle, but it also took out of its statement a
reference to the need to maintain an expansionary monetary
policy stance.
    "We read these two statements as hinting the intention to
move the policy rate towards neutrality but not necessarily
through a front-loaded continuous rate normalization cycle,"
Goldman Sachs analysts wrote in a note.
    "Additional near-term rate hikes are likely given the
deterioration of the current and prospective inflation and
exchange rate outlook."
    Several emerging market central banks have embarked on a
hiking cycle to stave off inflation, with Russia's 25bps hike on
Friday being the latest.    
    Among stocks, Chile's LATAM Airlines slumped nearly
 8%. Latin America's largest carrier said it has received
several offers to fund its exit from Chapter 11 bankruptcy. Each
of the offers are worth more than $5 billion, less than the
company's claims estimates of between $8 billion and $9.9
billion.
    
    Key Latin American stock indexes and currencies: 
    
                              Latest     Daily % change
 MSCI Emerging Markets         1309.07               0.7
                                        
 MSCI LatAm                    2403.25               0.5
                                        
 Brazil Bovespa              115230.31             -0.11
                                        
 Mexico IPC                   51579.58              0.36
                                        
 Chile IPSA                    4457.93              1.15
                                        
 Argentina MerVal             76020.95            -1.434
                                        
 Colombia COLCAP               1320.39             -0.18 Currencies             Latest     Daily % change
 Brazil real                    5.2519             -0.48
                                        
 Mexico peso                   19.8648              0.26
                                        
 Chile peso                      788.3              0.58
                                        
 Colombia peso                 3832.53              0.23
 Peru sol                       4.0978             -0.18
                                        
 Argentina peso                98.1000             -0.04
 (interbank)                            
                                        
 
 (Reporting by Susan Mathew in Bengaluru; Editing by Angus
MacSwan and Gareth Jones)
  
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