Latin American currencies and stocks eyed their third straight week of declines as rising coronavirus cases in the region and globally put a question mark over the pace of recovery from the pandemic-fueled slump.
Cases in South America continued to accelerate, with Mexico's health ministry reporting 6,104 new confirmed cases and 736 deaths on Thursday, while the country's Finance Minister Arturo Herrera tested positive for the virus.
Brazil remained the second largest COVID-19 hot spot in the world, only second to the United States, which reported a record daily rise in cases on Thursday.
The Brazilian real led declines among regional counterparts, weakening 2.7% against the dollar.
In Latin America's biggest economy, the Federal University of Sao Paulo (Unifesp) is in talks to test a potential coronavirus vaccine developed by Italian researchers.
Mexico's peso slipped 1% after data showed Mexico's economy posted a record contraction in April, highlighting the devastation caused by lockdowns on economic activity, particularly in manufacturing.
The Chilean peso also fell 1%, as the world's biggest copper miner Codelco said it was suspending refinery and foundry operations at its sprawling Chuquicamata division to prevent further spread of the new coronavirus.
The MSCI's index for Latin American stocks tumbled 2.9%, while its currencies counterpart fell 2%.
Fears of a second wave of contagion and gloomy economic forecasts have stalled a sharp recovery for Latin American stocks from a meltdown in March, with investors doubtful if current stimulus measures will suffice.
"Risk assets have clearly grown comfortable ignoring the world's gloomy fundamentals, with the IMF adding to the chorus that's highlighting the disconnect between financial markets and the economic outlook," said Han Tan, market analyst at FXTM.
Meanwhile, International Monetary Fund Managing Director Kristalina Georgieva said the global economic crisis due to the coronavirus could ultimately test the Fund's $1 trillion in total resources, "but we're not there yet."