EMERGING MARKETS-LatAm assets ease on profit-taking

* LatAm stocks, currencies soften alongside global markets

* Profit-taking leads markets after previous week's rally

* Bond spreads widen as Fed buys Treasuries

NEW YORK, May 11 (Reuters) - Latin American assets were
slightly weaker on Monday as investors took profits on gains
made last week supported by hopes the global recession may be
waning.

Global equity markets and emerging market assets rallied
last week as the results of U.S. government stress tests of
major banks eased worries about the banking sector, while
better-than-expected U.S. jobs data raised hopes the recession
is moderating.

Benchmark Morgan Stanley Capital International's Latin
American stock index .MILA00000PUS eased 0.46 percent, while
the MSCI emerging markets stock index .MSCIEF fell 0.3
percent.

"We had a bit of a spill in equities today and that has
triggered profit taking across emerging markets as well," said
Nick Chamie, head of emerging markets research at RBC Capital
Markets in Toronto.

U.S. equities fell on Monday after several major banks
announced large common stock offerings to repay government
bailout funds.

"Given the recent strong gains it is not unreasonable to
expect that we are going to see periods in which people are
going to be very quick to take some profits or cover some
loans," Chamie added.

Weak equity markets in the United States tend to weigh on
emerging market stocks and currencies as investors seek less
risky assets.

Brazil's Bovespa index .BVSP was down 1.32 percent,
Mexico's IPC index .MXX eased 0.63 percent, while Argentina's
MerVal index lost 1.75 percent. Colombia's IGBC stock
index .IGBC fell 1.32 percent, while Chile's blue-chip stocks
.IPSA gained 0.52 percent and Chile's all-market IGPA index
.IGPA rose 0.50 percent.

Currencies were mostly weaker with the Mexican peso MXN=
falling 0.52 percent to 13.14 per dollar, Chilean peso CLP=CL
easing 0.67 percent to 569.1 per dollar and the Colombian peso
COP= shedding 0.86 percent to 2,221.01 per dollar.

The Brazilian real (BRBY: Quote, Profile, Research) was gaining 0.43 percent on the
day to 2.06 per dollar.

Government debt spreads, the premium that investors demand
for holding riskier security than U.S. Treasuries, widened 18
basis points to 485 basis points over Treasuries, according to
JP Morgan's Emerging Markets Bond Index Plus (EMBI+)
11EMJ.JPMEMBIPLUS.

U.S. Treasuries rallied on the back of weak U.S. stocks and
large buying of government debt by the Federal Reserve.

Brazil's global bond due 2040 BRAGLB40=RR, considered the
emerging market benchmark paper, eased 1.00 percentage point to
bid 129.938 in price and to yield 5.311 percent.

With no major economic indicators this week, investors will
be left to get guidance from market flows, analysts said.
(Editing by James Dalgleish)