EMERGING MARKETS-LatAm equities set for fifth week of gains on strong inflows, precious metal surge

Stocks, FX muted after a strong week LatAm funds receive equity inflows of over $960 mln - JPM Brazil, Peru stocks at fresh record highs Mexican economy unexpectedly contracts in November By Twesha Dikshit and Ragini Mathur Jan 23 (Reuters) - LatAm assets were muted on Friday, after a strong weekly performance, as geopolitical jitters led to a precious metals rally while the resource-rich region also benefited from strong inflows. J.P. Morgan data showed EM equity inflows posted another strong week with LatAm funds gaining over $960 million - the strongest subscription in almost 15 years - according to the bank. MSCI’s gauge of Latin American equities (.MILA00000PUS) and currencies (.MILA00000CUS) was flat. Both were set for solid weekly gains during a week where developing global tensions led to a stall in global markets. “The ongoing volatility in markets continues, with mixed results in global equities and bonds, and a weaker USD. EM equities and precious metals are the leading performers, with EU and U.S. shares lagging,” said BNY’s head of markets macro strategy Bob Savage in a note. LatAm has proven to be resilient to geopolitical noise so far in 2026 with the broader equity index showing double-digit gains, aided by a rotation to safe haven precious metals and a diversification away from other regions. Still, some volatility is expected going into the year with elections in Peru, Colombia and Brazil as well as USMCA trade negotiations for Mexico. EQUITIES HIGHER, FX UNDER PRESSURE J.P.Morgan analysts said they were ‘overweight’ Brazil equities on expected central bank easing cycle and upcoming elections. The benchmark stock index (.BVSP) rose 0.3% and was set for its largest weekly gain in over 5 years. Brazil’s central bank rejected a report that one of its directors asked lender BRB to buy assets of liquidated Banco Master, currently under investigation for alleged fraud. Mexican stocks (.MXX) dropped 0.5%, with data showing the economy unexpectedly contracting in November. The central bank is widely expected to pause its interest rate cuts cycle. Copper-exporter Peru’s benchmark index (.MXNUAMPESCPGPE) was at a fresh record high, adding 0.5%. Copper prices firmed after Chile’s Capstone Copper said a worker’s strike had forced a production halt at its Mantoverde mine in Chile. Stock indexes in Chile (.SPIPSA) and Argentina (.MERV) were higher, while Colombia’s (.COLCAP) ticked lower. Argentina’s central bank eased currency controls on Thursday, allowing companies to access the official foreign exchange market to prepay foreign currency debt, provided the repayment was carried out alongside longer-term refinancing. Currencies were broadly weaker, with Colombia’s peso (CLP=) weakening 0.8% against the greenback. Brazil’s real (BRL=) and the Chilean peso (CLP=) dropped 0.3%, each. Meanwhile, U.S. control of Venezuela’s oil exports blocked barrels that had been servicing debt to China, lining up a potential showdown between the two superpowers that could further complicated the South American country’s path out of default. Key Latin American stock indexes and currencies at 14:37 Stock indexes Latest Daily % change MSCI Emerging 1498.31 0.21 Markets (.MSCIEF) MSCI LatAm 3043.31 -0.08 (.MILA00000PUS) Brazil Bovespa 176170.65 0.33 (.BVSP) Mexico IPC (.MXX) 68010.38 -0.49 Chile IPSA (.SPIPSA) 11525.37 0.15 Argentina MerVal 3084119.3 0.58 (.MERV) Colombia COLCAP 2424.63 -0.38 (.COLCAP) Currencies Latest Daily % change Brazil real (BRL=) 5.2999 -0.29 Mexico peso (MXN=) 17.4739 -0.01 Chile peso (CLP=) 870.72 -0.25 Colombia peso (COP=) 3628.14 -0.79 Peru sol (PEN=) 3.3543 -0.01 Argentina peso 1,430.0 -0.03 (interbank) (ARS=RASL) Argentina peso 1,470.0 1.67 (parallel) (ARSB=)