EMERGING MARKETS-Latam markets mixed as investors weigh regional data, US rate outlook

By Ragini Mathur, Sudeshna Ghoshal and Avinash P

Nov 13 (Reuters) - Latin American assets were mixed on Friday, as investors weighed the outlook for US interest rates alongside regional economic data and central bank signals.

Chile's peso weakened to a session low of 1003.06 a dollar, its lowest level since April 2025, before reversing losses to trade slightly higher, while the country's 2042 and 2054 dollar bonds each fell about 1 cent, according to Tradeweb data.

Copper, Chile's top export and a key driver of its assets, was poised for its biggest weekly dip since March. MET/L

The metal has benefited from AI-related investment, but sentiment weakened after Nvidia Chief Executive Jensen Huang resigned on Thursday, adding to concerns that spending on AI infrastructure buildout could slow.

MSCI's Latin American currency index .MILA00000CUS eased 0.1% and remained on course for a third straight weekly decline. The regional equities index .MILA00000PUS rose 0.54%, leaving it broadly flat for the week.

The dollar edged higher and remained at 19-month highs as stronger-than-expected US inflation data reinforced expectations that the Federal Reserve could raise interest rates again.

Higher US yields tend to draw capital into dollar-denominated assets, putting pressure on emerging market currencies. Weaker currencies can also fuel imported inflation, limiting central banks' room to cut rates.

In Mexico, investors assessed mixed signals from Washington on trade. Treasury Secretary Scott Bessent said he expected the US to reach trade deals with Mexico and Canada, a day after President Donald Trump threatened to double tariffs on Mexico over a migrant caravan.

Mexican President Claudia Sheinbaum said on Friday that no migrant caravans are headed toward the northern border with the US.

The Mexican peso rose 0.33%, while the benchmark stock index .MXX fell 0.8%, retreating after reaching a record high in the prior session.

Mexico's central bank last week cut its benchmark rate by 25 basis points to 6.25%.

"Obviously, you got a lot of relief from lower interest rates because that came as somewhat of a surprise," said Juan Perez, director of trading at Monex.

"You're looking at a world in which the US, over the past few years, has spent time focusing on imposing tariffs. But now, given the potential for friction within the US government, there appears to be less of a threat from that."

Elsewhere, Peru's central bank raised its benchmark rate by 25 basis points to 4.50% late on Thursday, as expected, warning that supply shocks, firmer inflation expectations and strong domestic demand were complicating inflation's return to target.

Andres Abadia of Pantheon Macroeconomics expects the bank to hold in December, but said another hike remains a real possibility.

Peruvian stocks .MIPE00000PUS fell 0.23%, while the sol appreciated 0.1%.

Brazil's retail sales rose 0.1% in September from the previous month, defying forecasts for a 0.3% decline.

Brazil's Senate on Thursday approved the main text of a fiscal package backed by President Luiz Inacio Lula da Silva's government that combines spending curbs with revenue measures aimed at meeting fiscal targets. Senators are due to vote on amendments next week.

The real fell 0.24% and remained pinned at 17-month lows, while Brazil's benchmark Bovespa index .BVSP gained 0.63%.

Key Latin American stock indexes and currencies at 1941 GMT: