Emerging Markets: LatAm markets mixed as investors assess U.S. sanctions on Iran, Mexico data

Afya

24/08/2026 20:34

LatAm stocks up 0.3%, FX up 0.1%
Mexico's economy grows at fastest pace in Q2 since 2022
Mexico inflation accelerates in early August
Lula, Flavio Bolsonaro neck and neck ahead of Brazil election, Nexus poll shows
Brazil central bank eyes steps to tackle household debt
Updates to afternoon trading levels, adds analyst comments
By Ragini Mathur and Utkarsh    Hathi
Aug 24 (Reuters) - Most Latin American stocks rose on Monday, while currencies were mixed, as investors assessed the potential spillover effects of expansive U.S. sanctions on Iran's trading partners as well as Mexico's growth and inflation figures. 
The U.S. announced an expansion of secondary sanctions on countries having business ties with Iran, aimed at pressuring Tehran to end the attacks in the Strait of Hormuz - a critical global oil shipping route.
Brent crude prices declined 2.2%, though remained elevated at above $90 per barrel. O/R
MSCI's index tracking Latin American equities .MILA00000PUS rose 0.3%, while the currency equivalent .MILA00000CUS edged 0.1% higher. Both indexes extended gains after logging their biggest weekly gain in 10 on Friday.
The U.S. dollar index =USD rebounded from a three-month low and edged 0.2% higher, weighing on the region's currencies.
Markets are awaiting the U.S. Federal Reserve Chair Kevin Warsh's debut speech at the annual Jackson Hole conference later this week for clues on the monetary policy path amid a surge in Treasury yields last week that spooked global investors. 
     
     
MEXICO AND BRAZIL IN FOCUS
Mexico's economy rebounded in the second quarter, recording its strongest growth since early 2022, while the 12-month inflation rate accelerated to 3.26% in early August, though it remained within the Bank of Mexico's target range of 3%, plus or minus one percentage point.
"Mexico's economy should be performing far better than it has, given its geographic position, privileged U.S. market access and demographic dividend," Geronimo Mansutti, senior economist at Tellimer Research, said in a note on Mexico's longer-term economic performance.
Mexican stocks .MXX edged 0.1% lower, while the peso MXN= weakened 0.4%.
Investors were also watching failed U.S.-Canada trade talks after Washington imposed 50% tariffs on some Canadian goods on Saturday, following the failure of the two allies to reach a deal. 
The talks are separate from, but politically intertwined with, the broader 2026 review of the U.S.-Mexico-Canada Agreement.
In Brazil, attention remained on October elections and potential fiscal reforms. President Luiz Inacio Lula da Silva and right-wing Senator Flavio Bolsonaro are in a technical tie in a potential runoff ahead of October's presidential election, a Nexus poll commissioned by lender BTG Pactual showed.
"Brazil's election is still capping asset interest," said Geoff Yu, senior EMEA market strategist at BNY.
"Any formal proposal on a tighter spending cap would be a significant signal for Brazilian rates and fiscal credibility."
The benchmark stock index .BVSP rose 0.7%, while the real BRL= slipped 0.3%. 
Brazil's central bank chief Gabriel Galipolo said the bank was studying measures to curb rising household debt.
Shares in Brazilian education company YDUQS YDUQ3.SA jumped about 13% after the firm said it was in talks with Nasdaq-listed Afya AFYA.O over a potential business combination.
Elsewhere in emerging markets, Moody's upgraded Pakistan's sovereign rating to B3 from Caa1, citing improved governance and reduced external vulnerability risks.
     
     
Key Latin American stock indexes and currencies at 19:15 GMT
Stock indexes
Latest
Daily % change
MSCI Emerging Markets .MSCIEF
1694.89
-1.57
MSCI LatAm .MILA00000PUS
3043.08
0.3
Brazil Bovespa .BVSP
172251.16
0.71
Mexico IPC .MXX
65664.8
-0.1
Chile IPSA .SPIPSA
11518.48
1.59
Argentina MerVal .MERV
3000133.99
3
Colombia COLCAP .COLCAP
2496.47
1.51
     
Currencies
Latest
Daily % change
Brazil real BRL=
5.1539
-0.29
Mexico peso MXN=
16.958
-0.37
Chile peso CLP=
911.75
0.28
Colombia peso COP=
3061.5
-0.8
Peru sol PEN=
3.3491
0.09
Argentina peso (interbank) ARS=RASL
1,509.0
-0.60
Argentina peso (parallel) ARSB=
1,545.0
0.32
     

 (Reporting by Ragini Mathur and Utkarsh Hathi in Bengaluru; Editing by Aurora Ellis and Vijay Kishore)
 ((Ragini.Mathur@thomsonreuters.com; utkarshtushar.hathi@thomsonreuters.com))