April 5, 2017 / 10:55 PM / a year ago

EMERGING MARKETS-Brazil stocks hit by pension reform doubts, Mexico peso seesaws

 (Recasts, adds closing prices throughout)
    April 5 (Reuters) - Brazilian stocks dropped on Wednesday on
after a poll stoked concerns that President Michel Temer's
government may struggle to pass a pension reform package seen as
needed to rein in public spending.
    Brazil's benchmark Bovespa stock index sank 1.5
    A survey of lawmakers published by newspaper Estado de S.
Paulo on Wednesday said that not even a watered-down version of
the pension reform bill would muster enough votes to clear the
lower house of Congress.
    The reform plan is seen as key for Brazil to plug a widening
budget gap. Brazilian stocks hit a nearly six-year high in
February on bets Temer would be able to pass reforms.
    In Mexico, the peso currency shed early gains after minutes
of the latest Federal Reserve meeting backed expectations for
higher U.S. interest rates that could sap demand for riskier
emerging market assets.
    The Banco de Mexico placed its entire offer of $200 million
in foreign exchange hedges in an auction in which demand far
outstripped supply, reflecting appetite for the program aimed at
supporting the country's currency.
    The peso is up around 10 percent so far this year,
rebounding from all-time lows on hopes that U.S. President
Donald Trump will not impose heavy tariffs on Mexican exports to
the United States as he had threatened.

    Key Latin American stock indexes and currencies at 2100 GMT:
 Stock indexes                   Latest     Daily      YTD pct
                                              pct       change
 MSCI Emerging Markets           969.22      0.42         12.4
 MSCI LatAm                    2,667.84     -0.05        13.98
 Brazil Bovespa               64,774.76     -1.51         7.55
 Mexico IPC                   49,207.61     -0.27         7.81
 Chile IPSA                    4,872.82      0.98        17.21
 Chile IGPA                   24,376.54       0.9        17.57
 Argentina MerVal             20,683.02     -0.72        22.22
 Colombia IGBC                10,194.35      0.13         0.65
 Venezuela IBC                45,494.90     -0.54        43.49
 Currencies                      Latest     Daily      YTD pct
                                              pct       change
 Brazil real                     3.1137     -0.52         4.35
 Mexico peso                    18.8270     -0.05       10.162
 Chile peso                       658.2      0.33         1.90
 Colombia peso                    2,859      0.00         4.98
 Peru sol                         3.247      0.09         5.14
 Argentina peso                 15.3600     -0.03         3.35
 Argentina peso                   15.82      0.38         6.32
 (Reporting by Michael O'Boyle, additional reporting by Marcelo
Teixeira; editing by G Crosse)
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