EMERGING MARKETS-Latam stocks down, Brazil shares up on hopes of reform

By Susan Mathew

May 27 (Reuters) - While most Latin American stocks weakened on Monday, Brazil shares rose sharply after a pro-government march mounted pressure on Congress to pass reforms seen as crucial to the economy.

Sao Paulo's Bovespa stock index .BVSP jumped 1.2% on broad-based gains. Volumes were limited, however, by market holidays in Britain and the United States.

On Sunday, supporters of Brazilian President Jair Bolsonaro marched in support of his agenda and against lawmakers whom they see standing in his way of passing reforms such as the overhaul of the pension system.

The supporters blamed Brazil's corrupt political system as a hindrance to Bolsonaro in making progress on his legislative and economic agenda, and the march came amid polls showing declining approval ratings for the government while the pension reform makes its way through congress.

Mining major Vale VALE3.SA was the biggest boost, tracking a surge in iron ore prices. IRONORE/

Retailer Magazine Luiza MGLU3.SA was among the top gainers after it upped its offer for online shoe retailer Netshoes NETS.N by $1 to $93.2 million.

Meanwhile, card payment processor Cielo CIEL3.SA dropped 5.5% and slid to the bottom of the index after it canceled previously provided net profit guidance for 2019.

The real BRL= was flat at 1426 GMT, having risen up to 0.5% in early trade, while currencies in Mexico MXN=, Chile CLP= and Argentina ARS= slipped between 0.1% and 0.45% against a stronger dollar. FRX/

Stocks in Mexico .MXX fell 0.3% and looked set to extend losses to a fifth straight session, while those in Colombia .IGBC shed 0.2% as the U.S.-China trade war still loomed, albeit without any significant fresh developments over the weekend.

Key Latin American stock indexes and currencies at 1426 GMT:

Stock indexes

Latest

Daily % change

MSCI Emerging Markets .MSCIEF

988.54

0.19

MSCI LatAm .MILA00000PUS

2603.36

0.82

Brazil Bovespa .BVSP

94629.26

1.23

Mexico IPC .MXX

42476.73

-0.33

Chile IPSA .SPCLXIPSA

4867.29

-0.29

Argentina MerVal .MERV

-

-

Colombia IGBC .IGBC

12114.39

-0.24

Currencies

Latest

Daily % change

Brazil real BRL-

4.0242

-0.03

Mexico peso MXN=

19.0560

-0.12

Chile peso CLP=

695.1

-0.14

Colombia peso COP=

-

-

Peru sol PEN=PE

3.3450

0.03

Argentina peso ARS=

44.90

-0.45

(Reporting by Susan Mathew in Bengaluru Editing by Matthew Lewis)

((susan.mathew@thomsonreuters.com +91-80-6749-1130 Reuters Messaging: susan.mathew.thomsonreuters.com@reuters.net))

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