EMERGING MARKETS-Mexican peso slips on global risk aversion, Brazil's real bucks trend

    Jan 3 (Reuters) - The Mexican peso weakened on Thursday as
investors sought safe haven assets on worries about slowing
global economic growth,  but Brazil's real bucked the trend due
to expectations for policy reform by the country's new
    The real firmed 0.6 percent to a six-week peak
against a weaker dollar, after rising more than 2 percent on
Wednesday, as newly sworn in President Jair Bolsonaro's
government took steps towards delivering promised and much
needed reforms.
    Brazil stocks also rose, recovering from a dip in
early trade, and staying at all-time high levels hit on
     "We will be susceptible to external volatility, but there
is room for local assets to continue to show more positive
relative performance as long as it is feasible to believe in the
economic reforms and the smooth running of the new government,"
said Dan Kawa, a strategist at asset management company TAG
    Energy stocks drove gains in Sao Paulo as oil prices rose,
while state-controlled water and sewage provider Sabesp
 was the top performer, up more than 12 percent,
boosted by the new government's privatization push.
    Shares of state-run power company Eletrobras
 were more than 6 percent higher for the same reason.
    The Mexican peso was 0.2 percent lower at 1342 GMT in
volatile trading. 
    It fluctuated between trading flat to lower as risk aversion
took hold on renewed concerns of slowing global growth after a
shock revenue warning by Apple Inc, its first downgrade
in nearly 12 years. The company blamed weaker iPhone sales in
    Oil exporter Colombia's currency rose due to higher crude
prices. The Colombian peso was 0.3 percent up at a
two-week high. 
    Key Latin American stock indexes and currencies at 1342 GMT:
    Stock indexes             Latest    Daily %
 MSCI Emerging Markets          952.05     -0.38
 MSCI LatAm                    2686.46      0.87
 Brazil Bovespa               91297.96      0.31
 Mexico IPC                       0.00         0
 Chile IPSA                    5143.49      0.35
 Argentina MerVal             31096.63         0
 Colombia IGBC                11181.22         0
       Currencies             Latest    Daily %
 Brazil real                    3.7680      1.09
 Mexico peso                   19.6027     -0.21
 Chile peso                      699.2     -0.27
 Colombia peso                  3233.5      0.12
 Peru sol                         3.37     -0.06
 Argentina peso                37.6500      0.00

 (Reporting by Susan Mathew in Bengaluru, additional reporting
by Claudia Violante in Sao Paulo;)

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