EMERGING MARKETS-Troubles at Petrobras weigh on Bovespa; Mexican peso extends deep freeze slide

    * Petrobras shares slide 5% as CEO resists pressure to
    * Mexican peso down for 5th straight day; set for 2% weekly
    * Mexico's government readying ~$5 bln Pemex lifeline

    By Susan Mathew
    Feb 19 (Reuters) - Brazil's Bovespa slid on Friday as oil
major Petrobras slumped on concerns about top management, while
Mexico's peso fell for a fifth straight session as the effects
of a deep freeze in the neighboring state of Texas spilled over
into Mexico, hindering factories.
     Shares of Petroleo Brasileiro slid
around 5%, on course for their worst session since October as
its chief executive resisted pressure from Brazil's President
Jair Bolsonaro to resign following tensions over rising fuel
    While Bolsonaro has expressed sympathy for truckers
threatening to strike over higher diesel prices, Castello Branco
said their complaints were not the company's problem and
insisted that Petrobras will set prices independently of
political pressure.
    Underperforming regional peers, the Bovespa index
slipped 0.9%, putting it on track for a 1% weekly decline. 
    Brazil's real, meanwhile rose 0.9% against a softer
dollar, but as is the case with most emerging market currencies,
looked to post declines on the week as rising U.S. Treasury
yields squeezed risk assets.
    Brazil's Congress will next week analyze a constitutional
amendment that aims to revive emergency cash transfers to
millions, while examine cuts elsewhere to stop from breaching a
spending cap. The country's stretched fiscal status has weighed
on interest in Brazil's financial markets.
    Mexico's peso weakened 0.5% as investors worried
about a hit to the country's manufacturing sector. More
companies halted production in Mexico due to power blackouts
caused by Texas limiting fuel supply owing to the cold wave
    Electric power and water service slowly resumed at darkened
oilfields and refineries in Texas on Friday.

    The peso has lost about 2% over the last five sessions. 
    Meanwhile, Reuters exclusively reported that Mexico's
government is planning to inject a total of about $5 billion
into state oil company Petroleos Mexicanos (Pemex) this year.

    But market experts were less than enthused. 
    "This is in line with our expectations as well as the long
standing government approach of offering ad hoc assistance to
Pemex without fixing the core problems," said Citigroup
    Concerns about the weight of bailing out the firm on
Mexico's economy have led to downgrades by rating agencies of
both the firm and Mexico's sovereign credit rating. 
    Copper prices rallied and top producer Chile's peso
firmed to six-week highs, while sliding oil prices weighed on
crude exporter Colombia's peso.
    Key Latin American stock indexes and currencies:
  Stock indexes           Latest   Daily %
 MSCI Emerging Markets    1429.63     0.32
 MSCI LatAm               2394.33     0.56
 Brazil Bovespa         118150.93    -0.88
 Mexico IPC                     -        -
 Chile IPSA               4546.74     0.62
 Argentina MerVal        51955.35    0.248
 Colombia COLCAP          1355.34     0.12
      Currencies          Latest   Daily %
 Brazil real               5.3941     0.85
 Mexico peso              20.4028    -0.56
 Chile peso                 704.6     0.82
 Colombia peso            3548.51    -0.10
 Peru sol                  3.6517    -0.02
 Argentina peso           89.1400    -0.09
 (Reporting by Susan Mathew in Bengaluru;)