EMERGING MARKETS-Latam markets rebound broadly, Colombian peso falls as investors assess tariffs

Updates to midsession trading

By Purvi Agarwal, Lisa Pauline Mattackal and Johann M Cherian

Jan 28 (Reuters) - Indexes tracking Latin American currencies and stocks rose on Tuesday, as investors gauged the impact of U.S. President Donald Trump's fresh tariff talks, though Colombia's peso continued to fall after a last-minute deal with the U.S.

In his latest speech on tariffs, Trump said he was planning to impose tariffs on imported computer chips and some metal imports, among others.

The Mexican peso MXN=, among the most vulnerable to U.S. tariffs, was up 0.6% against the greenback in choppy trading as investors await the Feb. 1 deadline when the U.S. is expected to unveil tariffs on top trade partners.

The peso had weakened to its lowest level in almost a week on Monday, after Trump's spat with Colombia dashed hopes of the U.S. taking a softer stance on tariffs.

The Colombian peso COP= depreciated 0.7%, while MSCI's broader index tracking Latam currencies .MILA00000CUS added 0.8%.

Colombian CO10YT=RR and Mexican MX10YT=RR 10-year bonds declined for the second-straight day.

On the equities front, MSCI's stocks measure .MILA00000PUS rose 0.6%, with Colombia's COLCAP .COLCAP up 2.2%, while Mexican equities .MXX dipped 0.1%.

When asked on how Latam economies can continue maintaining a relationship with the U.S., Thea Jamison, managing director of CHANGE Global Investment, said it is in everyone's interest to maintain and enhance the intertwined business relationship with Mexico, even as the country and Colombia get a handle on the drug cartels in their respective economies.

With Brazil, "given that it's such a significant economy and a source of agricultural natural resources, it is important to manage that relationship."

Brazil's real BRL= firmed 0.4%. Data showed federal tax revenue in Brazil rose 9.62% in real terms in 2024 to a record 2.65 trillion reais ($448.39 billion).

Meanwhile, the Chilean peso CLP= weakened 0.9% ahead of a local interest rate decision, with investors widely expecting the central bank to keep rates on hold.

The currency in the export-heavy economy has dipped 0.7% so far this year, after 2024's drop of nearly 13%, pressured by tariff threats, a hawkish tone adopted by the U.S. Federal Reserve and domestic fiscal worries.

Trump's proposed tariffs on copper also weighed. Chile is the world's largest copper producer.

Investors were also on edge ahead of the Fed's next policy decision on Wednesday, followed by Brazil's. Higher U.S. rates typically pressure demand for riskier emerging market assets.

Argentina's Merval .MERV index lost 0.4%, with investors circumspect about the country's negotiations with the International Monetary Fund over a new lending program.

Referring to the banking sector, Jamison said it "is attractive because the penetration in terms of private credit to (gross domestic product) is extremely low ... and they're just starting to do some lending and it's a story for the years to come."

Key Latin American stock indexes and currencies: