EMERGING MARKETS-Latam FX dips; Brazil's real gains on improving prospects

       * U.S. holiday gives few trading cues to stocks
    * Real stabilizing, Brazil central bank head says
    * Petrobras shares down after firm cuts spending plan

    By Ambar Warrick
    Nov 26 (Reuters) - Brazil's real ticked higher on Thursday
after encouraging comments from the central bank president,
while most other Latin American units edged lower as optimism
over a coronavirus vaccine waned.
    The real added 0.3% after central bank president
Roberto Campos Neto said the currency looked to have stopped
weakening and was now stabilizing, indicating that upward
pressure on inflation this year will ease.
    The country reported its smallest monthly primary deficit
since the advent of the pandemic, indicating a recovery in Latin
America's largest economy was underway. Formal job creation in
Brazil also surged to a record high in October.

    But a resurgence in infections could potentially topple the
fledgling recovery and pressure the real, which is among the
worst performing emerging market currencies this year.
    "Although we do not expect strict lockdown measures to be
reimposed in the near term, a strong second wave would increase
the odds of (President Jair) Bolsonaro pushing for the extension
of crisis-related benefits into 2021," Wilson Ferrarezi, an
economist at TS Lombard, wrote in a note.
    "Our base case is that the emergency aid measures will end
in December, barring a worse-than-expected deterioration in the
    High spending due to the pandemic had seen Brazilian debt
levels spiking, giving the government little room to increase
spending in response to higher cases.
    Brazilian stocks trickled lower, with a market
holiday in the United States providing a dearth of cues to
regional equities.
    Shares of Petroleo Brasileiro SA fell about 1.9%
after the state-controlled oil firm cut its five-year investment
plan due to weakness in the oil market.
    Mexico's peso fell 0.5% as oil prices dipped.
    Chile's peso was flat as investors weighed high copper
prices against the Chilean Senate's rejection of an
opposition-led coronavirus relief bill giving citizens more
opportunities to withdraw funds from their pensions.

    Congress had let Chileans withdraw up to 10% of their funds
from Chile's private pension system in July to ease the economic
burden of the coronavirus lockdown.

    Key Latin American stock indexes and currencies:

                              Latest     Daily % change
 MSCI Emerging Markets         1229.21                0.9

 MSCI LatAm                    2240.33               0.27

 Brazil Bovespa              109869.12              -0.24

 Mexico IPC                   41984.87              -0.51

 Chile IPSA                    4103.33              -0.77

 Argentina MerVal             54392.03              0.446

 Colombia COLCAP               1259.48              -0.33

       Currencies             Latest     Daily % change
 Brazil real                    5.3045               0.26

 Mexico peso                   20.0500              -0.55

 Chile peso                        765              -0.08

 Colombia peso                 3619.57              -0.11
 Peru sol                        3.605              -0.06

 Argentina peso                80.8700              -0.09

 (Reporting by Ambar Warrick in Bengaluru
Editing by Paul Simao)

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