EMERGING MARKETS-Latam assets mark time, set to end week higher

By Aaron Saldanha

May 24 (Reuters) - An index of Latin American stocks marked time on Friday, on course to post a solid weekly gain, as did Latin American currencies, which held ground against the dollar.

Investor sentiment towards the region has been marred this week by a worsening of U.S.-China trade ties amid Alphabet Inc's GOOG.O Google suspending some business with Chinese telecom giant Huawei Technologies Co Ltd early this week.

China's economy - the world's second largest - influences Latin American markets as its factories buy a large portion of the continent's resources exports.

Markets were set to end the week in positive territory on hopes U.S.-China trade talks will resume, Banorte Research Chief Economist and Head of Research Gabriel Casillas wrote in a note, citing U.S. President Donald Trump hinting on Thursday Huawei could be included in some form of a trade deal.

MSCI's index of Latin American stocks .MILA00000PUS was flat, but on track to post a 2.5% weekly gain, its first weekly rise since April. MSCI's Latin American currencies index .MILA00000CUS was set to add 0.6% for the week.

Brazil's real BRL= edged firmer, while Sao Paulo-traded stocks .BVSP tacked on 0.4%, supported by gains among materials and energy stocks.

State-run oil firm Petroleo Brasileiro SA (Petrobras) saw its common shares PETR3.SA and preferred shares PETR4.SA rise 0.7% and 1.1% , respectively, as Brent crude futures LCOc1 started their recovery following Thursday's 4.6% drubbing. O/R

Vale SA VALE3.SA rose 2.8%, after Bank of America Merrill Lynch boosted its rating and price target on the miner's U.S.-listed shares VALE.N to "Buy."

Mexican stocks .MXX slid 0.4%, while the peso MXN= softened 0.1%.

Latin America's second-largest economy contracted in 2019's first quarter, from the previous three-month period, in a blow to the new government's drive to convince investors it can boost growth.

International investor sentiment toward Mexico has softened of late. U.S.-domiciled investors have yanked about $262 million in total from a commonly traded Mexico-focused equity ETF EWW.N over the three weeks ended Wednesday, Lipper estimates show.

Chile's peso CLP= rose 0.4%, supported by a gain in the price of copper CMCU3, the country's top export and a commodity which is greatly exposed to slowing Chinese growth. MET/L

Argentina's stocks .MERV rose 0.5%, while the peso ARS= firmed marginally.

Colombia's peso COP= firmed 0.7%, while local stocks .IGBC tacked on 0.6%, with oil firm Ecopetrol SA ECO.CN up 0.3% on firmer oil prices LCOc1. O/R

Latin American stock indexes and currencies at 1437 GMT

Stock indexes

Latest

daily % change

MSCI Emerging Markets .MSCIEF

988.64

0.39

MSCI LatAm .MILA00000PUS

2596.54

0.01

Brazil Bovespa .BVSP

94277.20

0.39

Mexico IPC .MXX

42638.30

-0.41

Chile IPSA .SPCLXIPSA

4909.43

0.32

Argentina MerVal .MERV

34564.11

0.54

Colombia IGBC .IGBC

12057.53

0.57

Currencies

Latest

daily % change

Brazil real BRBY

4.0317

0.37

Mexico peso MXNUSD=R

19.0585

-0.11

Chile peso CLP=CL

694.2

0.37

Colombia peso COP=

3355.7

0.59

Peru sol PEN=PE

3.342

0.21

Argentina peso (interbank) ARS=RASL

44.9800

0.24

(Reporting by Aaron Saldanha in Bengaluru; Editing by Andrea Ricci)

((Aaron.Saldanha@thomsonreuters.com; +91 80 6749 1130; Reuters Messaging: Aaron.Saldanha@thomsonreuters.com@reuters.net))

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