EMERGING MARKETS-Chile's peso leads Latam FX higher after positive China data

    * Trading volumes subdued due to Brazil, Mexico holidays
    * Latam stocks rise after steep weekly losses
    * Oil-linked currencies fall

 (Updates prices throughout, adds comments)
    By Ambar Warrick and Shreyashi Sanyal
    Nov 2 (Reuters) - Chile's peso led gains across Latin
American currencies on Monday as positive Chinese manufacturing
data supported copper prices, although sentiment remained
subdued ahead of Tuesday's U.S. presidential election.
    Activity in China's factory sector accelerated at the
fastest pace in nearly a decade in October, supporting copper
prices, given that China is the world's largest consumer of the
    Chile's peso rose 0.8% to the dollar on the rise in
prices of copper, Chile's largest export.
    Chile's economic activity fell 5.3% in September
year-on-year but grew 5.1% from the previous month, the central
bank said on Monday, as the country emerged from the worst
period of the coronavirus pandemic.
    Other Latam currencies moved in a flat-to-low range, as
anticipation of the U.S. election and holidays in Brazil and
Mexico - the region's largest economies - kept trading volumes
    Mexico's peso fell 1%, while Colombia's peso
shed 0.1% as oil prices plunged in the face of laggard demand
due to new coronavirus-driven lockdowns across Europe.
    "France, Germany, the UK and Belgium have announced that
they will be going back into lockdown... If we look at
pre-COVID-19 demand numbers, these four countries consumed the
equivalent of a little over 6% of global consumption," analysts
at ING wrote in a note.
    "Another key uncertainty for the market is the U.S.
presidential election - A Biden victory could see the U.S.
taking a less hawkish stance with Iran, and so raising the
possibility that we see oil sanctions against Iran removed." 
    Weakness in commodity markets, coupled with jitters over the
U.S. election, have weighed on Latam assets in recent weeks. 
    Emerging market sovereign debt issuance in 2021 could reach
around $140 billion, almost as high as this year, as a flurry of
high-yield bond sales offsets a slowdown in investment-grade
issuance, Goldman Sachs estimates.
    "With monetary policy set to remain very accommodative
worldwide, additional expected fiscal efforts in the U.S. and
Europe, and a Chinese economy continuing to fire on many
cylinders, the global macro environment for emerging markets
looks promising overall looking into 2021," said Alejo
Czerwonko, chief investment officer emerging markets Americas at
    Latam equities recovered slightly from their worst week in
six months, with the MSCI's index of regional stocks
 gaining 0.3%.
    Colombian markets were also closed for a holiday.
    Key Latin American stock indexes and currencies:
          Stock indexes                   Latest   Daily %
 MSCI Emerging Markets                    1114.23     0.98
 MSCI LatAm                               1811.66     0.29
 Brazil Bovespa                          93952.40        -
 Mexico IPC                              36987.86        -
 Chile IPSA                               3571.13     0.88
 Argentina MerVal                        47422.93    4.709
 Colombia COLCAP                          1136.75        -
              Currencies                  Latest   Daily %
 Brazil real                               5.7446        -
 Mexico peso                              21.4117    -1.12
 Chile peso                                 767.5     0.78
 Colombia peso                             3863.1     0.15
 Peru sol                                  3.6147        -
 Argentina peso (interbank)               78.6800    -0.44
 Argentina peso (parallel)                    164     3.05

 (Reporting by Ambar Warrick and Shreyashi Sanyal in Bengaluru;
Editing by Susan Fenton and Sandra Maler)

Nuestros Estándares: Los principios Thomson Reuters.