EMERGING MARKETS-Latam currencies weaken, Brazil shares come off record high

 (Recasts throughout, updates prices)
    By Susan Mathew
    BENGALURU, Jan 15 (Reuters) - Latin American currencies
weakened on Tuesday, with the Mexican peso retreating from near
three month highs, while stocks were pressured by Brazil shares
easing off record highs as investors took profits.
    The currencies fell against the dollar, which was supported
by weak German data hurting the euro, though the greenback
trimmed some gains after British lawmakers defeated Prime
Minister Theresa May's Brexit deal by a crushing margin.

    "Today the total focus will be on the Brexit vote by the
British parliament," said analysts at brokerage ModalMais in
Brazil who had said there was a "great possibility of it being
    Brazil's real led losses among regional currencies,
down 0.5 percent, while the Mexican peso weakened, but
cuts most of its losses after the dollar rally lost some steam
post the Brexit vote.
    Argentina's peso declined 0.37 percent, with data
showing 2018 inflation rate quickened to 47.6 percent, a 27-year
    "With a more stable ARS and the bulk of the pass-through
from last year's ARS sell-off behind us, we expect inflation to
continue to normalize going forward," analysts at Citigroup said
in a note to clients.
    Losses in the Colombian and Chilean pesos were
capped by a rise in prices of main exports of the two Andean
countries - oil and copper, respectively.
    Among stocks, Brazil's Bovespa index fell 0.4
percent after having hit an all-time high last session. 
    "There is nothing new, so many take the opportunity to
realize some profits," said a variable income head at an
investment bank brokerage in Sao Paulo. 
    The index has been touching new highs in recent sessions and
is on course to log its fourth straight week of gains, thanks to
optimism from policy reform expectations by the new government.
    Argentine shares reversed gains from earlier in the
day to close lower, extending losses to a third straight
    Bourses in Mexico and Chile eked out
gains, in line with a rise in Wall Street.
    Outside Latin America, most emerging market stocks ended
Tuesday higher, boosted by signals of more stimulus by China's
government to support its cooling economy.

  Key Latin American stock indexes and currencies at 2120 GMT:
 Stock indexes               Latest      Daily
 MSCI Emerging Markets        1,005.11      1.25
 MSCI LatAm                   2,827.08     -0.23
 Brazil Bovespa              94,055.72     -0.44
 Mexico IPC                  43,655.22      0.59
 Chile IPSA                   5,373.92      0.31
 Argentina MerVal            33,562.54     -0.62
 Colombia IGBC               11,663.04      0.06
 Currencies                  Latest      Daily
 Brazil real                    3.7167      0.22
 Mexico peso                   19.0030     -0.15
 Chile peso                        675     -0.27
 Colombia peso                3,139.28     -0.05
 Peru sol                        3.333      0.30
 Argentina peso                37.1000     -0.27

 (Additional reporting by Claudia Violante and Paula Arend Laier
in Sao Paulo;)

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