EMERGING MARKETS-Latam FX slips on China-U.S. tensions, mixed trade data

    * Chilean peso leads losses
    * Mexico's peso set to break 4-day winning streak
    * Trading volumes muted due to Brazil, U.S. holidays

 (Adds details, updates prices)
    By Susan Mathew and Ambar Warrick
    Sept 7 (Reuters) - Latin American currencies weakened in
slim trade on Monday as commodity-linked currencies were
pressured by signs of waning demand in China, while tensions
between China and the United States also weighed on sentiment.
    Oil prices fell and gains in metal prices were capped after
data showed that China's imports slipped in August, although
exports surged. China is one of the largest export destinations
for Latin America.
    Data also showed China's iron ore imports fell 10.9% in
August from a month earlier, easing from a record high.

    News that Washington may impose sanctions on China's biggest
chipmaker, SMIC, rattled markets with the possibility
of retaliatory action from Beijing.
    Mexico's peso fell slightly and was set to break a
four-day winning streak, despite official figures showing
Mexico's measure of spending on machinery, equipment and new
construction posted its biggest monthly rise on record in June
after plummeting earlier in the coronavirus pandemic.

    Chile's peso led losses among its peers after data
showed the value of shipments of copper fell 13.2% year-on-year
in August to $2.761 billion, hit by a dip in production and low
prices. Chile is the world's top world copper producer.

    Among stocks, Chile's IPSA index rose 1%, while
Mexican stocks added about 0.5%. Trading volumes were
muted due to market holidays in Brazil and the United States.
    In Argentina, the government said it successfully
restructured over $40 billion of local-law foreign currency debt
on Friday, on top of its recent $65 billion international bond
revamp, which will help the country dig itself out of its ninth
sovereign default. 
    The peso, however, fell to new lows. It has been
heavily controlled by the government after a spell of volatility
last year.
    A central bank survey showed Argentina's economy is likely
to contract 12% in 2020 due to the effects of the COVID-19
pandemic, a slightly more positive outlook than a month earlier.

    In another positive move, S&P Global Ratings on Monday
upgraded Argentina's long-term sovereign credit rating to
"CCC-plus" from "SD," citing the conclusion of prolonged foreign
and local law foreign currency debt restructurings.
    Key Latin American stock indexes and currencies:
    Stock indexes             Latest    Daily % change
 MSCI Emerging Markets         1094.48           -0.46
 MSCI LatAm                    2012.57            0.17
 Mexico IPC                   36666.74             0.6
 Chile IPSA                    3854.64            1.16
 Argentina MerVal             45766.26           1.533
 Colombia COLCAP               1240.39            0.01
       Currencies             Latest    Daily % change
 Mexico peso                   21.5850           -0.09
 Chile peso                      774.7           -0.48
 Colombia peso                    3710            0.09
 Peru sol                       3.5357           -0.28
 Argentina peso                74.6400           -0.27

 (Reporting by Susan Mathew in Bengaluru; Editing by Leslie

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