EMERGING MARKETS-Mexican peso breaks winning streak, other Latam FX fall as dollar gains ground

    By Susan Mathew
    Sept 7 (Reuters) - Latin American currencies weakened on
Monday with Mexico's peso breaking a four-session winning
streak, as the dollar gained ground amid China-U.S. tensions and
mixed trade data from Latam's major commodity exports
destination, China.
    A decline in oil prices on China demand uncertainty and as
Saudi Arabia made steep monthly price cuts also weighed on
currencies of crude exporters Colombia and Mexico,
which fell around 0.1% each.
    Investors shrugged off official figures showing Mexico's
measure of spending on machinery, equipment and new construction
posted its biggest monthly rise on record in June after
plummeting earlier in the coronavirus pandemic.
    Chile's peso slipped after data showed the value of
shipments of copper fell 13.2% year-on-year in August to $2.761
billion, hit by a dip in production and low prices. Chile is the
world's top world copper producer.
    Brazil markets were closed for a local holiday. Volumes were
muted as U.S. markets were closed for the country's Labor Day
holiday.
    Among stocks, Chile's IPSA index rose 0.3%, while
Colombia's COLCAP extended losses to a third straight
session. 
    Global stock markets were pulled higher by upbeat moves in
Europe, but news that Washington may impose sanctions on China's
biggest chipmaker, SMIC, and data showing China's
exports rose in August but imports fell kept sentiment fragile.

    Data also showed China's iron ore imports fell 10.9% in
August from a month earlier, easing from a record high.

    In Argentina, the government said it successfully
restructured over $40 billion of local-law foreign currency debt
on Friday, on top of its recent $65 billion international bond
revamp, which will help the country dig itself out of its ninth
sovereign default. 
    The peso, however, fell to new lows. 
    A central bank survey showed Argentina's economy is likely
to contract 12% in 2020 due to the effects of the COVID-19
pandemic, a slightly more positive outlook than a month earlier.

    
    Key Latin American stock indexes and currencies at 1400 GMT:
  Stock indexes           Latest   Daily %
                                   change
 MSCI Emerging Markets    1094.29    -0.47
                                   
 MSCI LatAm               2010.30     0.05
                                   
 Mexico IPC              36535.89     0.24
                                   
 Chile IPSA               3823.42     0.34
                                   
 Argentina MerVal               -        -
                                   
 Colombia COLCAP          1237.91    -0.19
                                   
                                          
      Currencies          Latest   Daily %
                                   change
 Mexico peso              21.5969    -0.14
                                   
 Chile peso                 772.6    -0.21
                                   
 Colombia peso               3710     0.09
                                   
 Peru sol                  3.5257     0.00
                                   
 Argentina peso           74.6400    -0.27
 (interbank)                       
                                   
 
 (Reporting by Susan Mathew in Bengaluru; Editing by Leslie
Adler)
  

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