EMERGING MARKETS-Mexican stocks hit near 5-month high while peso sinks to 11-month low

By Sudeshna Ghoshal, Johann M Cherian and Mehnaz Yasmin

Oct 21 (Reuters) - Mexican stocks climbed to a near five-month high on Wednesday, buoyed by upbeat corporate earnings and retail sales data, while the peso fell to an 11-month low, leading losses among Latin American currencies.

Equities .MXX gained 1.35% to their highest since May on a slate of positive quarterly results from América Móvil AMXB.MX and miner Grupo Mexico GMEXICOB.MX.

Mexican retail sales for August rose 1.2% from July and 3.3% from last year, the national statistics agency said on Wednesday.

The Mexican peso weakened 1.48% against the dollar and is among the region's top decliners this month, compounded by uncertainty over its trade negotiations with the US and comments by the local central bank earlier in October that investors viewed as dovish.

Meanwhile, MSCI's index tracking Latin American equities .MILA00000PUS shed 0.81% and the corresponding currencies gauge .MILA00000CUS slipped 0.66%.

EYES ON BRAZIL VOTE

The bigger focus in the region was Brazil, with a runoff expected on Sunday between Senator Flavio Bolsonaro and President Luiz Inacio Lula da Silva.

"The prospect of a Bolsonaro victory and a market-friendlier turn in policy has buoyed assets in Brazil," said Hasnain Malik, managing director, geopolitical risk and emerging markets equity strategy at Tellimer.

"But the rally has been so acute that there is not much risk of any backlash against austerity or non-compliance by the centrist bloc in Congress."

A Quaest poll, the institute's first since a debate between the candidates last Sunday, showed Bolsonaro's lead over Lula narrowing.

The real was little changed at 5 per dollar, having gained nearly 3% this month, which would be its biggest monthly gain since April.

The Bovespa index .BVSP slipped 0.94% but was still on track for its steepest monthly rise, of about 11%, since January.

Colombia's peso declined 0.41% and the COLCAP index .COLCAP was up 0.58% after lawmakers said the 2027 budget bill approved by the Colombian Congress could be scrapped due to a procedural flaw linked to a discrepancy in the text.

Weaker copper prices also weighed on the currencies of exporters including Peru and Chile .

Meanwhile, oil prices hovered near five-month highs of $109 a barrel. The US cannot expect dialogue with Iran while blockading and threatening it, Iranian President Masoud Pezeshkian said on Wednesday, according to state media. O/R

Elsewhere, Ukrainian bonds , gained 2 cents on the dollar after Russian President Vladimir Putin agreed to resume US-mediated peace talks with Ukraine as soon as next month.

The Israeli shekel firmed 0.17% after the local central bank left short-term interest rates unchanged amid stable inflation, opting to pause ahead of the country's general election next week.

Key Latin American stock indexes and currencies: