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EMERGING MARKETS-Latam FX set for annual losses; Chilean peso outperforms

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    * Brazil stocks hit record intraday high; overall debt falls
    * Chilean peso set to gain 5.5% in 2020
    * Coronavirus cases surge across Latin America

 (Updates prices, adds analyst comment)
    By Shashank Nayar and Ambar Warrick
    Dec 30 (Reuters) - Most Latin American stocks and currencies
rose on Wednesday in their last trading day of the year, but
were set to register annual losses as a second wave of
coronavirus cases offset a fledgling recovery in risk assets and
economic trends. 
    Colombia's peso led gains for the day, jumping 1.5%
to the dollar thanks to recent strength in oil markets. But the
currency, like most of its regional peers, was set to end the
year lower.
    Brazil's real fell 0.1% to the dollar, but is by far
the worst performing emerging market currency this year due to
the coronavirus pandemic, which raised serious concerns over the
country's fiscal health.
    Chile's peso was set to be the sole annual gainer,
thanks to a resurgence in the prices of copper- the country's
largest export. Recovering industrial demand in China was one of
the biggest contributors to the spike in copper prices.
    The MSCI's index of regional currencies was
set to shed 15% for the year.
    Brazilian stocks hit a record intraday high, and
were set to end the year a shade higher. The MSCI's index of
Latin American stocks was set for an annual loss
of more than 15%.
    Brazil posted a $3.5 billion public sector budget deficit in
November as the government maintained spending to tackle the 
pandemic.
    Brazilian President Jair Bolsonaro also called for a return
to normality, saying that Brazil had reached its debt limit
while dealing with the impact of COVID-19.
    The currency of oil-exporting nation Mexico was flat,
as a surge in coronavirus-related deaths and fresh lockdowns
offset gains in crude prices.
    More than a quarter of Latin America's deaths have been in
Mexico, which, like Brazil, has struggled with a new wave of
infections.
    The rapid spread of the virus in the region has set most
Latin American stocks and currencies to severely lag their
emerging market peers for the year, and investors sought better
prospects in Europe and Asia.
    Argentine stocks were set to outperform their
regional peers for the day with a 24% gain.
    Broader risk appetite for the day was boosted after the
United Kingdom approved the coronavirus vaccine developed by the
University of Oxford and AstraZeneca, which has an
agreement with the Brazilian government to supply doses.

    "Risk sentiment remains buoyant, with vaccine roll-out hopes
providing confidence despite growing COVID-19 case numbers,"
said Stephen Innes, chief global market strategist at Axi.
    Chile could also greenlight the AstraZeneca vaccine in the
near-term.
    Markets in Brazil, Chile, Colombia and Argentina will be
closed for New Year's Eve on Thursday.
        
    Latin American stock indexes and currencies:
    
                              Latest      Daily % change
 MSCI Emerging Markets         1288.06                1.68
                                        
 MSCI LatAm                    2462.42               -0.21
                                        
 Brazil Bovespa              119446.42                0.03
                                        
 Mexico IPC                   44613.79               -0.18
                                        
 Chile IPSA                    4177.44               -0.49
                                        
 Argentina MerVal             51596.49               0.538
                                        
 Colombia COLCAP               1448.71               -0.14 Currencies             Latest      Daily % change
 Brazil real                    5.1881               -0.13
                                        
 Mexico peso                   19.8830                0.04
                                        
 Chile peso                      710.7                0.61
                                        
 Colombia peso                 3417.75                1.59
 Peru sol                        3.619               -0.03
                                        
 Argentina peso                84.1400               -0.13
 (interbank)                            
                                        
 
    

 (Reporting by Shashank Nayar in Bengaluru; Editing by Jan
Harvey and Grant McCool)
  

Our Standards: The Thomson Reuters Trust Principles.

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