EMERGING MARKETS-Latam assets slide as Trump's Fed pick lifts dollar; Colombia in focus

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      MSCI Latam FX, stocks set for best months in years


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      Colombia's cenbank lifts rate by 100 bps


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      Ukraine bonds gain ahead of more peace talks


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      Indonesia financial regulator resignations follow market
rout



 (Updates to mid-session trading)
    By Purvi Agarwal and Johann M Cherian
       Jan 30 (Reuters) - Latin American currencies and stocks
fell on Friday after U.S. President Donald Trump announced his
nominee for the Federal Reserve chair, while Colombia's central
bank announced a ?bigger-than-expected rate hike in an effort to
temper price pressures.
    Trump nominated former Fed governor Kevin Warsh as his pick
to head the U.S. central bank after Chair ?Jerome Powell's term
ends in May.
    Investors anticipate Warsh to be a candidate who would stop
short of the aggressive policy ?easing associated with other
candidates.
    "While markets are probably relieved that a well-known,
former Fed official ?has been nominated as the ?next Fed chair,
they are also likely to pivot to concerns that he won't be as
dovish as they were expecting the new chair to be," ?said Chris
Zaccarelli, chief investment officer for Northlight Asset
Management.
    The move supported ?the dollar index, that has been
trading around four-year lows this week,
consequentially weakening currencies in emerging markets,
including Latin America.
    MSCI's index tracking stocks in the region
fell 2%, and the currency equivalent lost ?0.4%.
    Still, a rally earlier in the month had the ?equities index
on track ?to log its biggest monthly jump since November 2020,
while the currencies gauge was set for its largest gains since
June 2025.
    Colombia's central bank raised its benchmark interest rate
by 100 basis points to 10.25%, its ?first hike since 2023, as
policymakers pointed to rising inflation pressures, a jump in
inflation expectations and mounting fiscal and external risks.
    The surprise move arrives months ahead of crucial elections
in the country that stands in the face of a right-wing tide in
Latin America.
    Colombia's peso depreciated 1.3% and the equities
index lost 0.5% in tandem with broader losses.
    Dollar strength and profit booking sparked a selloff in
commodities, including base and precious metals and weighed on
assets in resources-rich Latam. A ?30% slide ?in silver prices was
the steepest one-day fall for the precious metal.
    Brazil's real weakened 1% against the greenback.
Currencies of copper producers Chile and Peru fell
1.4% and 0.7%, respectively, while Mexico's peso lost
1.1%.
    On the ?equities front, mining giants Brazil's Vale
 lost 2.8%, Chile's SQM fell 3.5%, while
Mexico's Grupo Mexico and Industrias Penoles
 dropped 5% and 12%, respectively.
    Ukraine bonds rallied over 1 cent on the dollar each, with
the one maturing in 2035 up 1.2 cents amid a
week-long halt on airstrikes on Ukraine ahead of the weekend
where more talks are expected between the warring countries.
    Ethiopia will renegotiate a deal to restructure its $1
billion international bond after the country's official
creditors, including China and France, said a proposed agreement
was inadequate.
    The bond, maturing in 2035, ?fell 1.5 cents
on the dollar.
    The heads of Indonesia's financial regulator and stock
exchange resigned suddenly in a shake-up that followed this
week's $80 billion stock market rout and mounting concerns over
transparency and governance.
    The index closed 1.2% higher after falling over 8%
in the last two sessions.

    Key Latin American stock indexes and ?currencies:
 Latin American market prices
 from Reuters
 Eq  Latest                       Daily % change
 ui
 ti
 es
 MS  1526.46                      -1.82
 CI
 Em
 er
 gi
 ng
 Ma
 rk
 et
 s
 MS  3124.71                      -2.05
 CI
 La
 tA
 m
 Br  181398.63                    -0.95
 az
 il
 Bo
 ve
 sp
 a
 Me  67880.1                      -2.32
 xi
 co
 IP
 C
 Ch  11420.07                     -0.9
 il
 e
 IP
 SA
 Ar  3203372.65                   -0.245
 ge
 nt
 in
 a
 Me
 rv
 al
 Co  2479.87                      -0.54
 lo
 mb
 ia
 CO
 LC
 AP
 Cu  Latest                       Daily % change
 rr
 en
 ci
 es
 Br  5.2451                       -1.07
 az
 il
 re
 al
 Me  17.4111                      -1.13
 xi
 co
 pe
 so
 Ch  871.11                       -1.39
 il
 e
 pe
 so
 Co  3672.5                       -1.27
 lo
 mb
 ia
 pe
 so
 Pe  3.3671                       -0.72
 ru
 so
 l
 Ar  1446.5                       -0.14
 ge
 nt
 in
 a
 pe
 so
 (i
 nt
 er
 ba
 nk
 )
 Ar  1450                         1.72
 ge
 nt
 in
 a
 pe
 so
 (p
 ar
 al
 le
 l)
 (Reporting by Purvi Agarwal and Johann M Cherian in Bengaluru;
Editing by Shreya Biswas)