EMERGING MARKETS-Latam FX steady against weaker dollar; stocks rise

* Mexico’s Walmex down after Q4 results * Peru, Colombia GDP figures miss estimates * FX flat, stocks add 0.6% (Updated at 3 p.m. ET/2000 GMT) By Shashwat Chauhan and Lisa Pauline Mattackal Feb 15 (Reuters) – Latin American currencies steadied on Thursday as the dollar softened after a bigger-than-expected fall in U.S. retail sales, while most major bourses in the region rose in tandem with global stocks. The dollar index, which measures the greenback against a basket of major peers, fell 0.4% after data showed U.S. retail sales fell more than expected in January. Most Latin American currencies have been under pressure this week, hurt by the dollar’s recent resurgence following a surprise uptick in January U.S. consumer prices. MSCI’s gauge of Latin American currencies was little changed as Brazil’s real and Mexico’s peso were about flat against the dollar. A gauge of regional stocks gained 0.6%, set for its best session in over one week. Colombia’s peso rose 0.3%. Data showed Colombia’s economy grew 0.6% last year, coming in below expectations of 1.1% expansion forecast by economists polled by Reuters which analysts said could lead to sharper rate cuts. “In 2024 … year-on-year inflation is expected to fall below 8% in February, allowing BanRep to accelerate the easing cycle to a 75 basis point cut on March 29th,” Scotiabank analysts said in a note. The broader Latin American currency index was also weighed down by Chile’s peso which fell 1% after rising earlier in the session. Minutes from the country’s January central bank meeting showed policymakers considered reducing the benchmark interest rate by either 100 or 125 basis points, with one rate setter thinking it was appropriate to analyze the option of 150 bps. The Peruvian sol recouped earlier losses, boosted by rising copper prices. The central bank also placed a currency swap of 650 million soles earlier in the day. Peru’s economy shrank 0.74% in December, data showed, sinking hopes that the country was on the way out of recession. Brazil’s main stock index gained 0.6%, lifted by rising utilities and consumer staples shares. The government of the State of São Paulo announced the beginning of the public consultation process on the documents for the privatization of Sabesp. Its shares were last up 1.6%. Benchmark indexes in Chile and Colombia rose 1.7% and 0.6%, respectively. Mexico’s benchmark index was about flat, with a 3.4% loss in shares of Walmex weighing on the index after Mexico’s biggest retailer reported fourth-quarter results. HIGHLIGHTS ** Colombia central bank should proceed with caution on rate reductions, says IMF ** Nigeria inflation approaches 30%, highest since mid-1996 ** Kenya to buy back over $1.4 bln of bond that had unnerved investors Key Latin American stock indexes and currencies at 2000 GMT: Latest Daily % change MSCI Emerging Markets 1008.68 0.98 MSCI LatAm 2539.38 0.59 Brazil Bovespa 127742.42 0.57 Mexico IPC 57243.19 -0.01 Chile IPSA 6188.70 1.73 Argentina MerVal 1094263.78 -1.024 Colombia COLCAP 1244.74 0.61 Currencies Latest Daily % change Brazil real 4.9679 0.05 Mexico peso 17.0524 0.12 Chile peso 965.8 -0.99 Colombia peso 3906.5 0.28 Peru sol 3.8385 0.59 Argentina peso 834.5000 -0.06 (interbank) Argentina peso 1055 4.74 (parallel) (Reporting by Shashwat Chauhan and Lisa Mattackal in Bengaluru; Editing by Andrea Ricci and Cynthia Osterman)