Latam currencies rise; Brazil stocks hit all-time high

Latin American currencies propped up against a weak dollar on Thursday, while stock markets in the region were subdued amid a gloom for global equities but Brazil stocks hit an all-time high on market optimism about the new government.

MSCI's index for Latin American currencies rose the most in two months led by gains in the Argentinean peso as dollar fell with investors seeking the perceived safety of the Japanese yen after a shock revenue warning from Apple Inc exacerbated concerns about a Chinese and global economic slowdown.

Stocks in Brazil's benchmark Bovespa index bucked the global trend to hit a record high for the second day in a row led by the banking and energy sector and as investors remained upbeat about expectations for policy reform by the country's new government headed by President Jair Bolsonaro.

Bolsonaro's administration took office on Tuesday and was quick to issue decrees affecting the economy, agriculture and society, while forging closer political ties with the United States.

"Implementing a liberal agenda as outlined in his (Bolsonaro) speeches reinforces our positive outlook for the stock market," said XP Investments in a client note.

The Chilean stock market rose marginally helped by a rise in shares of LATAM Airlines, but gains were capped by a decline in the shares of lithium producer SQM which slid to its lowest level since mid-2017.

Chile's peso rose about 0.4 percent but hovered around two-month lows with the country's main export copper sliding to its lowest levels in 1-1/2 years.

Mexico's peso and the stock market fell, dragged down by worries about a slowdown in the global economy and a warning from the central bank about inflation expectations remaining high and subject to structural risks.

Banco de Mexico (Banxico) raised the reference interest rate to 8.25 percent at the end of December from the 8 percent in force since November, its highest level in more than a decade, citing inflationary pressures.

Argentina's benchmark index fell for the first time in five sessions led by losses in electronics manufacturer Mirgor SACIFIA and after data showed industrial output decreased by 13.3 percent in November compared with the same month last year.