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EMERGING MARKETS-Latam assets weaken, head for weekly falls as Evergrande worries linger

    * Brazilian real leads weekly declines in Latam  
    * Chile's 2022 draft budget seeks to tame deficit -Pinera
    * Mexican retail sales fall in July

    By Shreyashi Sanyal
    Sept 24 (Reuters) - Most currencies and stocks across Latin
America were subdued on Friday as questions arose about whether
China Evergrande will make a key interest payment that could
avoid a potential global fallout, with Brazil's real lagging its
peers for the week. 
    The MSCI's index for Latin American currencies
 was down 0.8%, with the currencies taking cues
from Asian counterparts on fears that Beijing will let overseas
bondholders swallow large losses as a liquidity crisis deepens
at China Evergrande.
    Brazil's real weakened 0.5% against the dollar
in early trading a day after the Brazilian central bank's move
to raise interest rates was seen as less hawkish than expected.
The currency is headed for its third straight weekly decline to
fall nearly 1%. 
    Adding to the downbeat mood, data showed consumer confidence
in Brazil reached a 5-month low in September, as higher
inflation, potential problems in electricity supplies and
political uncertainty contributed to pessimism.
    "The significant rise in inflation since the beginning of
the year amid still high unemployment rates are likely the main
reasons behind the recent deterioration in consumer confidence,"
strategists at Citi Research wrote in a client note. 
    Brazil's central bank also detailed the credit lines that it
will offer to banks at the end of the year, when emergency loans
issued in 2020 to ride out the pandemic will expire.

    The Mexican peso dipped 0.4%, set to close the week
with declines of 0.6%. Data showed Mexican retail sales fell
0.4% in July from June.
    Copper producer Chile's currency was also set to end
the week with declines. The country's President Sebastian Pinera
unveiled an $82.1 billion draft budget for 2022 on Thursday that
he said would begin to tame a ballooning deficit, following more
than a year of emergency spending to combat the coronavirus
pandemic.
    The Colombian peso fell 0.3%, while Peru's Sol
bucked the trend to firm 0.4%. 
    Latin American bourses also traded decidedly in the red,
with the MSCI's index falling 1.4% and tracking
its fourth straight weekly loss. 
    Chilean shares fell 1.1%, leading declines among
its peers, tracking lower copper prices.
        
    
    Key Latin American stock indexes and currencies at 1405 GMT:
    
          Stock indexes                   Latest    Daily %
                                                     change
 MSCI Emerging Markets                     1264.49     -0.63
 MSCI LatAm                                2306.54     -1.24
 Brazil Bovespa                          112895.24     -1.02
 Mexico IPC                               51366.49     -0.19
 Chile IPSA                                4365.14     -1.06
 Argentina MerVal                             0.00         0
 Colombia COLCAP                           1312.27         0
                                                            
             Currencies                   Latest    Daily %
                                                     change
 Brazil real                                5.3353     -0.51
 Mexico peso                               20.0900     -0.23
 Chile peso                                  787.5     -0.38
 Colombia peso                             3841.14     -0.25
 Peru sol                                   4.1026     -0.17
 Argentina peso (interbank)                98.5500     -0.01
                                                    
 Argentina peso (parallel)                     182      1.65
                                                    
 

    
 (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Andrea
Ricci)
  
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