EMERGING MARKETS-Latin American markets steady in holiday-thinned trade; Peru politics in focus

By Pranav Kashyap and Ragini Mathur

Feb 16 (Reuters) - Most Latin American currencies and stocks held to tight ranges on Monday as holiday-thinned markets kept trading subdued.

Regional stocks were rattled late last week just as they looked set to post respectable weekly gains. But much of that momentum evaporated as risk appetite soured, with fresh AI-driven jitters rippling across U.S. sectors, including software, insurance and trucking.

With markets in Brazil, Argentina, Venezuela, China, South Korea, Taiwan, the U.S. and Indonesia closed for holidays, volumes were light and price action largely muted.

Indexes tracking Latin American equities .MILA00000PUS edged up 0.1%, while the currency gauge .MILA00000CUS ticked 0.3% higher.

"In essence, volatility is slowly retracing but remains structurally high versus pre-sell-off levels because macro catalysts still anchor uncertainty," analysts on the derivatives desk of Laser Digital said.

Colombia's statistical agency released data showing the country's economic growth missed market expectations in 2025, weighed down by a struggling mining sector.

"This will be welcomed by the central bank, although we still suspect that BanRep (Colombia's central bank) will press ahead with a few more interest rate hikes given the deterioration in the inflation outlook," said Kimberley Sperrfechter, emerging markets economist at Capital Economics.

Colombia's central bank raised its benchmark rate by 100 basis points to 10.25% in January, its first hike since 2023, in a bid to curb rising inflationary pressures.

Colombia's stocks .COLCAP were down 0.3% and the country's currency COP= edged 0.1% lower.

PERU IN SPOTLIGHT AMID POLITICAL TURMOIL

Peru's economy grew 3.4% in 2025, fresh data showed.

Peruvian assets will be in the spotlight after Congress scheduled a debate for Tuesday on a motion to remove President Jose Jeri, as the government wrestles with a scandal over reports of the president's undisclosed meetings with a Chinese businessman.

The Andean nation has been mired in persistent political turbulence, with seven presidents, including Jeri, having been sworn in since 2016. Peruvians are also gearing up for a national election on April 12 to choose the next president.

Peru's sol currency PEN= edged up 0.1% on thin turnover, while the key equities index <.MXNUAMPESCPGPE> in Lima slipped 0.3%. Peruvian stocks, which outpaced regional peers in 2025, are up about 21% on a year-to-date basis.

Mexico's peso MXN= was flat, with the key stocks index .MXX down 0.09%.

Meanwhile, Chile's peso CLP= edged 0.2% lower, but its main stocks index .SPIPSA traded 0.1% higher.

Elsewhere, Nigeria's annual inflation rate cooled slightly to 15.10% in January, potentially giving the country's central bank room to cut rates next week, when it is set to deliver its first monetary policy decision of 2026.

The Nigerian naira NGN= edged 0.5% higher, while the key stocks index in Lagos .NGSEINDEX surged 4.3%.

Key Latin American stock indexes and currencies: