*

MSCI Latam stocks index off 0.6%%, FX slips 0.3%

*

Mexico lowers 2025 growth forecast

*

JPMorgan: over a third of EM companies to be hit by

tariffs

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Brazil's industrial output unexpectedly falls in February

By Johann M Cherian

April 2 (Reuters) - Currencies and stocks across most

Latin American markets declined on Wednesday, as investors

cautiously prepared for a series of reciprocal trade

restrictions that President Donald Trump is likely to impose on

trade partners of the United States.

MSCI's index tracking currencies in the region

dipped 0.3% flat against the dollar, while a

gauge for stocks lost 0.6%. Trump is expected to

announce the policies at 2000 GMT, and they are likely to take

effect immediately.

Analysts expect Trump's move to escalate a global trade war

and in the long-run damage global economic growth.

Mexico's peso, which has been sensitive to tariff

headlines, depreciated 0.5% and was last at 20.4 to the dollar,

while local stocks dipped 0.1%.

JPMorgan estimated that more than a third of emerging market

companies are likely to be "meaningfully" impacted by U.S.

tariffs when they hit, with Mexican and Chinese companies likely

to be heavily impacted, given that the U.S. is a significant

export market.

The second one-month pause to U.S. tariffs on Mexican and

Canadian imports in compliance with existing free trade rules is

also likely to expire later this week.

"Mexico is going to be the economy with probably the most

complex set of tariffs and exceptions because of the

interlinkages with the U.S. auto industry and the U.S. economy,"

said Padhraic Garvey, regional head of research, Americas at

ING.

"The other story is that Mexico is the one low cost friend

within which to manufacture some parts or even some vehicles. So

it is very difficult to assess where (tariffs) on Mexico is

gonna end up."

Adding to the gloom, a draft budget from the country's

finance ministry showed it expects the economy to grow at a

slower pace this year than previously expected.

Meanwhile, Brazil's real weakened 0.4% and the

Bovespa index lost 0.4% as investors assessed data that

showed industrial production unexpectedly fell in February from

the previous month.

The data fanned worries of an economic slowdown at a time

when the local central bank has kept interest rates high in an

attempt to soften inflation pressures triggered by increased

government spending.

A poll showed a majority of Brazilians now disapprove of

President Luiz Inacio Lula da Silva's performance leading Latin

America's largest economy.

Still the country's local assets have fared better among

peers this year as investors viewed the economy to be less

exposed to trade risks.

Colombia's peso was muted, while currencies of copper

producers Chile and Peru slipped, tracking weak

prices of the industrial metal.

Argentine markets were closed, but focus will be on any

hints of a trade deal with the U.S. as President Javier Milei is

set to visit the country on Wednesday.

Key Latin American stock indexes and currencies at 1443 GMT:

Latin American market prices

from Reuters

Eq Latest Daily % change

ui

ti

es

MS 1111.46 0.07

CI

Em

er

gi

ng

Ma

rk

et

s

MS 2083.08 -0.57

CI

La

tA

m

Br 130597.36 -0.42

az

il

Bo

ve

sp

a

Me 53282.46 -0.1

xi

co

IP

C

Ch 7697.96 0.16

il

e

IP

SA

Ar 2356530.77 0.76

ge

nt

in

a

Me

rv

al

Co 1623.36 -0.13

lo

mb

ia

CO

LC

AP

Cu Latest Daily % change

rr

en

ci

es

Br 5.707 -0.45

az

il

re

al

Me 20.4574 -0.52

xi

co

pe

so

Ch 949.21 -0.19

il

e

pe

so

Co 4146.86 0.02

lo

mb

ia

pe

so

Pe 3.6656 0.1

ru

so

l

Ar 1072.5 0.07

ge

nt

in

a

pe

so

(i

nt

er

ba

nk

)

Ar 1295 2.26

ge

nt

in

a

pe

so

(p

ar

al

le

l)