*

MSCI Latin American stocks index down 2.3%, currencies

down 1.6%

*

Offshore yuan drops to lowest against USD since trading

began

*

Ecopetrol falls as oil prices drop

(Updates with late afternoon trade)

By Johann M Cherian and Lisa Pauline Mattackal

April 8 (Reuters) - A brief recovery in most Latin

American stocks and currencies reversed course on Tuesday as the

U.S. moved ahead with tariffs on China, heightening fears of

slowing global growth.

The United States said that 104% duties on imports from

China will take effect at 12:01 a.m. Eastern Time on Wednesday,

even as President Donald Trump's administration moved to quickly

start talks with other trading partners.

Still, the White House reiterated that country-specific

tariffs of up to 50% would also take effect at midnight as

planned.

The move hit hopes for negotiations between the world's two

largest economies.

China's offshore yuan fell nearly 0.9% against the

dollar, to its lowest since it began trading in 2010.

MSCI's gauge for Latin American stocks fell

2.3%, while an index tracking currencies lost

1.6%. Both indexes recorded a third consecutive session of

losses.

"The U.S. will have a very difficult time negotiating with

China ... we expect to continue to see a volatile market," said

Stephen Dover, chief market strategist at Franklin Templeton.

Global markets had bounced higher earlier in the session

after Monday's selloff, but fell back later in the

day.

MSCI's index of global emerging market stocks, of

which Chinese equities make up the biggest holdings, was down

0.1% after it recorded its worst day since 2008 on Monday.

Latin American currencies fell broadly. Brazil's real

led declines, falling 1.4% to an over two-month low against the

dollar.

Data showed Brazil's public sector gross debt rose to 76.2%

of gross domestic product in February from the previous month,

driven by the country's heavy interest burden.

Dollar bonds across Latin America lost ground, with

Colombia's 2044 maturity down 1.9 cents and

Mexico's 2044 bond falling over 2.2 cents, as

per Tradeweb data.

Chile's peso briefly weakened past 1,000 per dollar

for the first time since late January, as prices of its top

export copper fell on worries that slowing growth, particularly

in top consumer China, would hit demand.

Still, Latin American assets have been spared the worst of

the selloff that has gripped global markets since Trump's

"Liberation Day."

"Except Mexico and parts of Central America, most of the

(Latin American) countries do not have a big exposure to trade

with the U.S.," said Eduardo Ordonez Bueso, an emerging markets

debt portfolio manager at BankInvest, adding this was an

argument for emerging market funds to add exposure to the

region.

Oil prices reversed gains, weighing on energy stocks.

Colombia's Ecopetrol slumped 7.7%, its worst day since

May 2023, dragging the COLCAP index down 3.2%.

A report, citing diplomatic sources, said the board of the

International Monetary Fund (IMF) could discuss a pending loan

deal with Argentina in a Friday meeting.

HIGHLIGHTS

** China, US clash over major Argentina currency swap line

** Colombia's inflation rose less than expected in March

** Limited options push China into trade 'war of attrition'

with Trump

Key Latin American stock indexes and currencies at 1950 GMT:

Equities Latest Daily %

change

MSCI Emerging Markets 1000.16 -0.13

MSCI LatAm 1888.41 -2.30

Brazil Bovespa 123692.85 -1.51

Mexico IPC 50243.81 -0.43

Chile IPSA 7151.04 -1.4

Argentina Merval 1984319.9 -2.056

9

Colombia COLCAP 1561.36 -3

Currencies Latest Daily %

change

Brazil real 5.997 -1.41

Mexico peso 20.802 -0.62

Chile peso 999.28 -1.05

Colombia peso 4427.45 -1.02

Peru sol 3.7443 -0.81

Argentina peso (interbank) 1075.5 0

Argentina peso (parallel) 1340 0.3731343

28

(Reporting by Johann M Cherian and Lisa Mattackal in Bengaluru;

Editing by Paul Simao and Shinjini Ganguli)