By Niket Nishant
Aug 10 (Reuters) - Colombian equities slipped after a major earthquake on Monday killed at least 20 people and caused widespread damage, while Latin American assets were muted on worries about the prolonged conflict in the Middle East.
Colombia's COLCAP stock index fell 0.51% and several dollar-denominated bonds traded lower. The peso, however, rose 1.09% against a stronger dollar and was one of the biggest gainers among regional currencies.
The earthquake comes at a delicate time for
the country, which is entering a new phase under right-wing President Abelardo De La Espriella.
De La Espriella, sworn in on Friday, pledged a fight against drug trafficking as well as austerity measures to restore confidence in the economy.
President Donald Trump's administration is also planning to provide $1 billion in security assistance to De La Espriella's government, the U.S. State Department said.
"That push marks a sharp break from the turbulent relationship under outgoing President Gustavo Petro, with whom Trump repeatedly clashed," wrote Jason Marczak and Bruce Mac Master, policy experts at Atlantic Council, a Washington, DC-based think tank.
"It also gives both administrations an opportunity to advance the agenda they have started to build during the transition," they added, noting that collaboration between the two countries could expand opportunities for U.S. business and boost Colombian production.
MEXICAN EQUITIES FALL, LATAM SUBDUED
Elsewhere, Mexican stocks fell 0.91% and were the biggest laggards in the region, while the peso dipped 0.13%.
The European Union imposed tariffs on terephthalic acid, a raw material used to make a common sort of plastic known as PET, made in South Korea and Mexico to protect producers in Belgium, Poland and Spain.
Brazil's Bovespa dropped 0.37% and the real fell 0.32%.
An MSCI index tracking Latin American stocks slid 0.26%. The corresponding currencies gauge was flat.
Over the weekend, Tehran reiterated that it would not reopen the Strait of Hormuz until Washington met certain demands, potentially keeping oil prices elevated and inflation risks front and center.
The muted moves in the region stood in stark contrast to EM peers in Asia, where equities rose despite higher oil prices as investors seized on a weak U.S. jobs report last week.
The soft print for July payrolls lowered the odds of an interest rate hike by the Federal Reserve, boosting risk appetite.
Equities in Chile and Peru were the only gainers in Latin America, rising 0.10% and 0.27%, respectively.
Key Latin American stock indexes and currencies:
Equities Latest Daily %
change
MSCI Emerging Markets 1669.42 0.7
MSCI LatAm 3034 -0.26
Brazil Bovespa 171874.3 -0.37
Mexico IPC 66327.6 -0.91
Chile IPSA 11267.13 0.1
Argentina Merval 3076623.62 -0.329
Colombia COLCAP 2338.47 -0.51
Currencies Latest Daily %
change
Brazil real 5.0975 -0.32
Mexico peso 17.1447 -0.13
Chile peso 915.84 -0.42
Colombia peso 3118.97 1.09
Peru sol 3.3742 0.25
Argentina peso (interbank) 1499 0.03
Argentina peso (parallel) 1505 1.33
(Reporting by Niket Nishant in BengaluruEditing by Nick Zieminski)
