EMERGING MARKETS-Argentine peso slips after ruling party’s defeat in mid-terms

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    * Peruvian sol rises after positive economic data
    * Risk of more populist near-term policies in Argentina - GS
    * Brazil, Mexican markets shut for local holidays

 (Adds details, updates prices throughout)
    By Susan Mathew
    Nov 15 (Businesshala) - Argentine assets continued with their
jittery session on Monday as the ruling center-left Peronists
suffered a defeat in mid-term elections, while Peru's sol firmed
after data showed its economy growing at a faster-than-expected
pace.  
    Argentina's ruling Peronist party was reeling on Sunday
after a midterm vote that saw its center-left coalition lose its
majority in Congress for the first time in almost 40 years and
taste defeat in its stronghold province of Buenos Aires.

    The heavily controlled peso fell about
0.1% to 100.31 per dollar while a move in the informal peso
exchange rate was awaited. Argentina's country risk fell a
significant 21 basis points.

    "The market is likely to take a net positive view of the
election results. A more market-friendly composition of Congress
could lead to more effective checks and balances and ultimately
a policy regime shift in 2023," said Alberto Ramos, an analyst
at Goldman Sachs.
    "But there is also the risk of more populist near-term
policies." 
    Citi strategists said they remain overweight on Argentina
credit on potential political change and valuations. "We think
that bonds have found a bottom in price and risk reward look
attractive." 
    Several markets in Latin America, including Brazil and
Mexico were closed for local holidays on Monday. 
    Peru's sol firmed 0.6% after data from the government
showed its economy grew 9.71% year-on-year in September,
slightly above a recent central bank projection, but its slowest
pace of expansion since March as it recovers from the COVID-19
pandemic.
    Chile's peso steadied by afternoon trading after
falling around 0.3% earlier in the session.
    Ahead of elections on Nov. 21, conservative Chilean
presidential candidate Jose Antonio Kast said that he does not
feel like a "far-right" politician, as he has been called in the
press, but rather a candidate "of common sense." 
    Polls showing him neck-and-neck with his left-wing rival
Gabriel Boric.  
    Market's generally favor right-wingers as they are typically
business friendly. 
        
    Key Latin American stock indexes and currencies at 1935 GMT:
    
          Stock indexes                   Latest    Daily %
                                                    change
 MSCI Emerging Markets                     1286.00     0.04
 MSCI LatAm                                2177.88    -0.75
 Brazil Bovespa                                  -        -
 Mexico IPC                                      -        -
 Chile IPSA                                4382.01    -2.31
 Argentina MerVal                         92409.33    -2.69
 Colombia COLCAP                           1356.48    -0.69
                                                           
              Currencies                  Latest    Daily %
                                                    change
 Brazil real                                5.4562     0.00
 Mexico peso                               20.6119    -0.49
 Chile peso                                  798.7     0.24
 Colombia peso                             3882.33    -0.05
 Peru sol                                   3.9806     0.63
 Argentina peso (interbank)               100.2700    -0.04
                                                    
 Argentina peso (parallel)                   196.5     1.78
                                                    
 
    
 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru;
Editing by Andrea Ricci)
  
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