EMERGING MARKETS-Mexican Peso leads gains amongst Latam FX; Banxico cuts interest rates

        *
      Brazil's economic activity beats expectations in September


        *
      Argentina's risk index falls to lowest level since July
2019


        *
      Colombia's Ecopetrol third-quarter profit slides 28%


        *
      Banxico cuts rates by 25 bps


        *
      MSCI Latam stocks index flat, FX up 0.4%



 (Updated at 1450 ET)
    By Johann M  Cherian and Pranav Kashyap
       Nov 14 (Reuters) - Most Latin American currencies ticked
up against the dollar on Thursday, with the Mexican peso leading
the charge as its central bank cut interest rates by 25 basis
points.
    Mexico's peso inched up 0.41% in a volatile session
against the dollar. Banxico lowered borrowing costs by 25 basis
points to 10.25%.
    Uncertainty over President-elect Donald Trump's policies on
trade, immigration and security following his Nov. 5 election
victory also prevailed, with the peso experiencing the steepest
declines among peers so far this year.
    Separately, Mexican President Claudia Sheinbaum said her
government would in the coming days present a plan to protect
the country's non-genetically modified white corn under the
constitution.
    "Markets have priced in too much weakness on the peso and
there could be a correction, but it doesn't change the outlook.
The fiscal outlook for Mexico is very challenging," said Wilson
Ferrarezi, an economist at TS Lombard.
    Brazil's real edged up 0.3% against the dollar after
the latest data pointed to robust economic activity in the
region's largest economy, underscoring expectations for coming
rate hikes by the central bank.
    Brazil has been affected to a lesser extent by the
appreciation of the U.S. dollar following Trump's election
victory, Brazil's central bank chief Roberto Campos Neto said.
    Markets awaited any measures to stabilize public finances,
with Brazil's central bank chief saying the government must cut
spending to the bone, as per a report.
    The real has weakened amid government hesitation to announce
a fiscal package to stem a rapid rise in mandatory spending.
   "If they announce something that is seen as inadequate, then
markets will sell off. They need to get this right," said Jon
Harrison, managing director for EM macro strategy at TS Lombard.
    Currencies of copper producers Chile and Peru
edged up 0.36% and 0.3% respectively, while Colombia's peso
 was trading flat.
    Traders also monitored an Asia Pacific Economic Cooperation
summit in Peru alongside a Group of 20 leading economies forum
in Brazil against the backdrop of Trump's recent win.
    An index tracking top currencies in the region
 edged 0.4% higher. Ratings agency S&P Global
said it expects any delay in Fed rate cuts to also slow the pace
of monetary easing across the region.
    Further, private fixed investment in Mexico could soften
until there is more clarity on trade policies from the incoming
U.S. administration, it said. Mexico had benefited from U.S.
companies shifting some operations closer to home over the past
two years.
    On the equities front, MSCI's equity index tracking regional
stocks was trading flat, while Brazil's Bovespa
index was up 0.17%.
    Mexico's benchmark stocks index was down 0.4.
    Colombia's Colcap index rose 1.1%, with
state-owned oil producer Ecopetrol rising 5.4% after
reporting third-quarter results.
    Argentina's Merval index added 2.4%.
    The JPMorgan risk benchmark, which shows the yield spread on
bonds versus comparable U.S. debt, reached its lowest level
since July 2019. Markets were optimistic about the policies of
Argentina President Javier Milei, who is also seen as a
political ally of Trump.

    Key Latin American stock indexes and currencies:


 Latin American market
 prices from Reuters
 Equities                    Latest     Daily %
                                        change
 MSCI Emerging Markets         1084.69      -0.82

 MSCI LatAm                    2090.88       flat
 Brazil Bovespa              127955.68       0.17
 Mexico IPC                   50543.82      -0.40
 Chile IPSA                    6478.97      -1.21
 Argentina Merval            2092313.5       2.44
                                     8
 Colombia COLCAP               1352.76       1.12

 Currencies                  Latest     Daily %
                                        change
 Brazil real                      5.78       0.30
 Mexico peso                     20.40       0.41
 Chile peso                     975.21       0.36
 Colombia peso                 4478.50       flat
 Peru sol                         3.80       0.30
 Argentina peso (interbank)        998       flat

 Argentina peso (parallel)        1120       flat



 (Reporting by Johann M Cherian in Bengaluru; editing by
Jonathan Oatis)