EMERGING MARKETS-Latam FX trims initial vaccine gains, Peru's sol at record low

    * Brazil stocks at highest level since March 5
    * Peru's sol hits low of 3.6678 on fears of political vacuum
    * Stronger oil prices boost Mexican, Colombian pesos

 (Updates comments, prices)
    By Shriya Ramakrishnan and Ambar Warrick
    Nov 16 (Reuters) - Most Latin American currencies trimmed
initial gains on Monday on news of another promising COVID-19
vaccine, while political uncertainty pushed Peru's sol to a
record low after the country's interim leader resigned.
    Drugmaker Moderna Inc said its experimental vaccine
was 94.5% effective in preventing COVID-19 based on interim data
from a late-stage clinical trial, making it the second U.S.
drugmaker to report better-than-expected results.
    The announcement sparked a global market rally on hopes for
a swifter economic recovery from the pandemic. But as with last
week, when Pfizer Inc reported positive vaccine trial
data, regional currencies sharply pared initial gains.  
    Most Latam currencies had ended last week lower despite an
initial boost from the vaccine news and the U.S. elections.
    Brazil's real traded 0.7% higher after rising as much
as 1.7%, while Sao Paulo stocks jumped as much as 1.5%
to a more than eight-month high.
    Sentiment for Brazil was further boosted by a central bank
survey showing an improved 2020 growth outlook for Latin
America's largest economy.
    "If last week was any guide, the positive sentiment might be
short-lived. While unambiguously good news, we think markets are
overestimating the timing and scalability of vaccine
implementation," Mazen Issa, senior FX strategist at TD
Securities, cautioned in a note.
    Peru's sol weakened 0.6% and the country's sovereign
dollar bonds turned lower, after lawmakers failed to name a
successor to departed interim president Manuel Merino.

    The political upheaval adds to uncertainty facing Peru, the
world's no. 2 copper producer, as it battles the coronavirus
pandemic and possibly its worst economic contraction in a
    "The impeachment and resignation of two presidents in one
week is clearly a risk-off event, and with popular sentiment
firmly in opposition to the former, this is a recipe for further
political unrest," said Ilya Gofshteyn, senior emerging markets
macro strategist at Standard Chartered.
    Mexico's peso and Colombia's peso rose on
strength in oil prices, as news of the vaccine boosted demand
    Local markets in Mexico and Colombia were shut for a
    A gauge of Latin American stocks gained
about 1.9%, while stocks in Chile climbed to a more
than three-month high.
    But Chile's peso traded flat, weighed down by threats
of strikes at some of its copper mines.
    Key Latin American stock indexes and currencies:
                              Latest      Daily % change
 MSCI Emerging Markets         1203.13                1.24
 MSCI LatAm                    2122.39                1.97
 Brazil Bovespa              105844.35                1.07
 Chile IPSA                    4046.30                1.02
 Argentina MerVal             50813.73                1.84 Currencies             Latest      Daily % change
 Brazil real                    5.4355                0.71
 Mexico peso                   20.3373                0.27
 Chile peso                      766.5               -0.01
 Colombia peso                 3627.45                0.37
 Peru sol                       3.6627               -0.60
 Argentina peso                79.9500               -0.25
 (Reporting by Shriya Ramakrishnan in Bengaluru; Editing by
Edmund Blair, Bernadette Baum and Richard Chang)

Nuestros Estándares: Los principios Thomson Reuters.