October 10, 2017 / 11:02 PM / a year ago

EMERGING MARKETS-Mexico peso hits near five-month low on NAFTA jitters

 (Recasts with peso at five-month low; updates prices)
    Oct 10 (Reuters) - The Mexican peso weakened for a fifth
straight trading day on Tuesday, slumping to a nearly five-month
low, on concerns that talks between Mexico and the United States
may fail to reach a new trade deal.
    Trade officials from Mexico, the United States and Canada
meet on Wednesday in the Washington area for a fourth round of
talks on renegotiating the North American Free Trade Agreement.
    On the eve of the talks, U.S. President Donald Trump warned
again in an interview with Forbes that he would like to scrap
the treaty that created one of the world's biggest trade blocs.
    The U.S. Chamber of Commerce accused the Trump
administration of making "poison-pill proposals" to sabotage
NAFTA on Tuesday.
    Fears of increased U.S. protectionism have hit the Mexican
peso particularly hard as the United States purchases over
three-quarters of Mexico's exports.
    Mexican bank Base said in a report that the talks were now
turning to issues such as wages and rules on where components
need to be sourced "that could lead to disagreements between
Mexico and the United States."
    The peso shed more than 0.8 percent to the weakest
since mid-May. It has lost more than 3 percent in the last five
sessions as concerns about NAFTA have increased.
    Meanwhile, the Chilean peso firmed sharply, helped
by stronger copper prices. 
    Stocks in Brazil's rebounded after two days of losses.
Financial shares rose while shares in state-controlled
oil company tracked oil prices higher.   
    Latin American stock indexes and currencies at 2148 GMT:

 Stock indexes               Latest        Daily   YTD pct
                                             pct    change
 MSCI Emerging Markets         1,112.52    +1.10    +29.02
 MSCI LatAm                    2,965.44    +1.25    +26.69
 Brazil Bovespa               76,897.21    +1.55    +27.68
 Mexico S&P/BVM IPC           49,982.94    -0.18     +9.51
 Chile IPSA                    5,477.32    -0.15    +31.94
 Chile IGPA                   27,401.87    -0.11    +32.16
 Argentina MerVal             27,097.26    +1.24    +60.17
 Colombia IGBC                11,065.50    +0.15     +9.26
 Venezuela IBC                   531.11    +0.65    -98.32
 Currencies                      Latest    Daily   YTD pct
                                             pct    change
 Brazil real                     3.1833    +0.06     +2.07
 Mexico peso                     18.830    -0.82    +10.14
 Chile peso                     629.000    +0.68     +6.63
 Colombia peso                2,957.000    -0.33     +1.51
 Peru sol                         3.264    +0.21     +4.60
 Argentina peso (interbank)      17.420    +0.23     -8.87
 Argentina peso (parallel)       17.810    +0.34     -5.56

 (Reporting by Bruno Federowski and Michael O'Boyle; Editing by
James Dalgleish)
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