* Brazil's real slips after current account gap widens * Mexican peso eases after weak GDP data * Chilean peso breaks 5-day losing streak * U.S.-China trade rhetoric improves (Updates prices; adds quotes) By Medha Singh Nov 25 (Reuters) - Brazil's real weakened on Monday after data showed the current account deficit in Latin America's largest economy widened in October, while a report showing the Mexican economy was in a mild recession in the first half of 2019 pressured the peso. The slipped against a firmer dollar as central bank data indicated the current account deficit widened more than expected, to $7.9 billion as the trade surplus shrank. "The number was a little bit of a surprise," said Luiz Ribeiro, head of Latin American equities at DWS Group. "But the current account deficit is growing not because of higher imports but because of lower exports, and one of the main reasons for that is lower exports to Argentina." The currency, which hit a record low against the dollar last week, is down about 8% this year as the economy sluggishly recovers from a deep recession and struggles to cope with a mounting fiscal deficit. The Mexican peso eased as revised data from the national statistics agency showed the economy entered a slight recession in the first two quarter of this year. "Mexico is in a really delayed stage of the economic cycle, like the United States, so it's very difficult to expect an acceleration in growth," Ribeiro said. MSCI's index of Latin American FX fell against a firmer dollar, which was lifted by promising news on the Sino-U.S. trade front. The Chilean peso, which advanced about 1% as the currency of the world's largest copper producer benefited from higher copper prices, bucked the trend. In Colombia, where anti-government protests that have largely been peaceful entered their fourth day, the country's currency was down 0.3% while stocks lost nearly 1%. "We don't think it will affect growth the same way it has in Chile, where the GDP forecast is reduced," said Ribeiro. Stocks in the region shed 0.8%, with equities in Brazil down 0.1% while those in Chile fell 1.7%. Key Latin American stock indexes and currencies at 1918 GMT: Stock indexes daily % Latest change MSCI Emerging Markets 1053.96 0.52 MSCI LatAm 2690.59 -0.8 Brazil Bovespa 108506.10 -0.17 Mexico IPC 43590.66 0.16 Chile IPSA 4649.70 -1.7 Argentina MerVal 33706.66 0.351 Colombia IGBC 1597.79 -0.99 Currencies daily % change Latest Brazil real 4.2127 -0.49 Mexico peso 19.4386 -0.34 Chile peso 791.3 0.94 Colombia peso 3432.25 -0.28 Peru sol 3.386 0.06 Argentina peso (interbank) 59.7100 0.12 (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Steve Orlofsky)
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