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EMERGING MARKETS-Brazil's real, Mexican peso hurt by tepid economic data

    * Latam stocks fall from recent peaks
    * Peruvian sol recovers from 18-year low
    * Brazil's real still set for strong recovery- analyst

    By Ambar Warrick
    Nov 11 (Reuters) - Brazil's real dipped on Wednesday after
retail sales came in weaker than expected, while most other
Latin American currencies retreated as investors attempted to
gauge the availability of a COVID-19 vaccine.
    The real fell as much as 0.6% after data
showed that September retail sales rose for the fifth
consecutive month to a record high, although the increase was by
far the smallest in those months and only around half of what
economists had expected.
    The reading underlined the economic stress from the pandemic
on Latin America's largest economy.
    Still, analysts noted that Brazil's economic fundamentals
were far stronger than most other countries in emerging markets,
and that a post-pandemic recovery for the real was due.
    "Given that the real is very cheap at current levels, we do
not think that a continued sell-off in the real at the rate
witnessed since the onset of the crisis is likely in the
long-term," said Matthew Ryan, senior market analyst at
financial services provider Ebury.
    "We are instead continuing to pencil in a recovery for the
currency against the dollar through to the end of 2021," he
said.
    Ryan cited Brazil's strong foreign exchange reserves, low
external debt levels and a manageable current account deficit as
reasons to buy into the real.
    While optimism over a vaccine had caused a bumper rally in
emerging markets earlier this week, a continued rise in global
coronavirus cases and signs of the pandemic's economic fallout
saw markets retracing their steps. The U.S. dollar rose on
safe-haven demand.
    Mexico's peso fell about 0.6% after September
industrial output was flat in September - a sign that a
fledgling recovery may be stalling.
    Losses in Chile's peso were limited by the prices of
copper, the country's top export, holding at a near 29-month
peak. News of the Pfizer Inc-BioNTech  
vaccine had caused a rally in commodity markets as investors bet
on a swift return to pre-pandemic demand.
    Colombia's peso was supported by strength in the oil
market.
    Peru's sol recovered slightly from an 18-year low
after Manuel Merino was sworn in as interim President of Peru on
Tuesday, following President Martin Vizcarra's ouster by
Congress a day earlier.
    Vizcarra's ouster had raised concerns of political
instability in the Andean nation, sending the sol and sovereign
bonds tumbling.
    Latin American stocks came off recent peaks,
with Brazil's Bovespa index falling about 0.7% from an
eight-month high. 
    
    Key Latin American stock indexes and currencies:
    
                              Latest        Daily % change
 MSCI Emerging Markets         1176.69                   -0.27
                                        
 MSCI LatAm                    2109.79                   -0.58
                                        
 Brazil Bovespa              104571.78                   -0.47
                                        
 Mexico IPC                          -                       -
                                        
 Chile IPSA                    3982.01                    0.11
                                        
 Argentina MerVal                    -                       -
                                        
 Colombia COLCAP               1213.39                       - Currencies             Latest        Daily % change
 Brazil real                    5.3940                   -0.09
                                        
 Mexico peso                   20.4380                   -0.61
                                        
 Chile peso                      755.5                    0.03
                                        
 Colombia peso                  3631.5                   -0.10
 Peru sol                       3.6107                    0.33
                                        
 Argentina peso                79.4200                    0.03
 (interbank)                            
                                        
 

 (Reporting by Ambar Warrick in Bengaluru; editing by Emelia
Sithole-Matarise)
  

Nuestros Estándares: Los principios Thomson Reuters.

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