EMERGING MARKETS-Chilean stocks, currency lead losses in Latam; Mexican peso rises

 (Rewrites, updates prices)
    By Ambar Warrick and Susan Mathew
    July 23 (Reuters) - A 4% slide in shares of miner SQM pushed
Chilean shares to their sharpest loss in more than two weeks on
Friday, leading losses across Latin American bourses, while the
country's currency lost 1% against a rising dollar. 
    SQM fell after it said a fire at one its
facilities would impact its iodine production between 150 and
200 metric tons. 
    Chile's IPSA stock index fell 2.1%, but was still
up 1% on the week, breaking a three-week losing streak. The
currency, however, extended losses to a fourth straight
week. 
    Worries about the Delta variant of the coronavirus denting
global economic growth pressured risk assets this week,
including prices of commodities such as copper - Chile's biggest
export.
    "We have revised down our forecasts for the Colombian peso
 and Chilean peso," said Jonas Goltermann, a senior market
economist at Capital Economics, citing uncertainty about the
outlook for fiscal policy given upcoming elections in both
countries.
    Goltermann expects Mexico's peso to hold up better given
elections there are not due until 2024. In Peru, confirmation of
left-wing Pedro Castillo as the President could see the
beaten-down sol recover some ground, especially if
Castillo proves more moderate than expected, he said. 
    The sol has lost more than 7% since Castillo's
surprise win in the first-round elections in April. On Friday,
the currency was up 0.3% in its fourth straight session of
gains. 
    Mexico's peso was up 0.4%, rising for a third session
running. On the week, however, it fell 0.8%. 
    Rising cases of the coronavirus pandemic had investors
worried. Mexico on Thursday reported its highest daily jump in
cases since January, bringing the total tally to more than 2.7
million, while total deaths stood crossed 237,000.
    These numbers may be significantly lower than actual
figures, the government has said, with separate data published
recently suggesting the actual death toll may be at least 60%
above the confirmed figure.
    Brazil's real erased session gains, trading down 0.2%
as the dollar gained traction with investor turning their focus
to the U.S. Federal Reserve's two-day meeting next week. Chair
Jerome Powell's dovish stance has helped risk assets so
far.
    A 5.3% slip in Braskem led losses in Brazil's
Bovespa index, after it reported a 17% fall in resin
sales in the second quarter. 
    Key Latin American stock indexes and currencies:
 
   Stock indexes           Latest    Daily %
                                     change
 MSCI Emerging Markets      1309.61    -1.26
                                     
 MSCI LatAm                 2510.84    -1.07
                                     
 Brazil Bovespa           124608.98    -1.22
                                     
 Mexico IPC                50197.00    -0.09
                                     
 Chile IPSA                 4197.18    -2.12
                                     
 Argentina MerVal          65038.39   -0.969
                                     
 Colombia COLCAP            1252.61     0.06
                                     
                                            
      Currencies           Latest    Daily %
                                     change
 Brazil real                 5.2230    -0.24
                                     
 Mexico peso                20.0577     0.24
                                     
 Chile peso                   760.8    -1.00
                                     
 Colombia peso                 3885    -0.48
                                     
 Peru sol                     3.925     0.20
                                     
 Argentina peso             96.4300    -0.02
 (interbank)                         
                                     
 
    
 (Reporting by Ambar Warrick
Editing by Marguerita Choy and Nick Zieminski)