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EMERGING MARKETS-Brazilian real up 1%, weekly rise outperforms Latam FX

    * Brazil's real logs first weekly gain in five
    * Chilean peso among few weekly decliners in Latam  
    * Argentina central bank to lower Leliq rate, hike repo rate

 (New throughout, updates prices, market activity and comments)
    By Shreyashi Sanyal
    Oct 9 (Reuters) - Brazil's real rose 1% on Friday and was
set for a weekly rise after days of data showed signs of an
improving economy, helping the currency outperform other major
Latin American currencies, while a weaker dollar also offered
    The real was headed for its first weekly gain
in five as data showed a pick-up in Brazil's services sector
last month. Another report showed a record reading on retail
sales for August. 
    Investors, however, worried about Brazil's public finances
after the introduction of a new fiscal bill, called Renda
Cidada, fanned fears about the government overshooting its
spending limit.
    FX analysts at Commerzbank said that given the uncertainty
about the pandemic's progression and its economic impact, it was
unlikely that disagreements about the consolidation of national
finances will be resolved soon.     
    Mexico's peso was on track for its second week of
gains after the country's government unveiled an infrastructure
investment plan worth nearly $14 billion on Monday. 
    Latam currencies also got a lift from the dollar,
which fell to three-week lows on Friday as optimism that a deal
for new U.S. stimulus would be reached, and as investors bet
that Democrat Joe Biden is more likely to win the U.S.
presidency and offer a larger economic package.
    Analysts say a Democratic sweep could also bode well for
emerging markets.
    "Biden is a much more risk friendly candidate, given his
international credentials for multilateralism and predictability
and a far less disruptive trade policy," said Alan Ruskin, macro
strategist at Deutsche Bank.
    The Colombian peso also headed for weekly gains,
getting a boost from rising oil prices.
    Chile's peso was among the few losers for the week,
as it tracked lower prices of copper, its main export, for the
    Argentina's peso was flat. The country's central
bank will lower the benchmark Leliq rate to 37%, from the
previous level of 38%, it said on Thursday, while raising the
passive repo rate 3 points to 27%, part of a wider interest rate
harmonizing push.
    The bank said the repo rate increase and alignment of the
'Leliq' rate with Treasury instruments will boost their
effectiveness in influencing short-term rates.
    Key Latin American stock indexes and currencies at 1904 GMT:
 Stock                          Latest    Daily % change
 MSCI Emerging Markets          1124.19   0.6
 MSCI LatAm                     1921.25   1.03
 Brazil Bovespa                 97329.05  -0.6
 Mexico IPC                     38478.58  0.19
 Chile IPSA                     3677.09   0.73
 Argentina MerVal               45929.66  0.984
 Colombia COLCAP                1184.44   -0.17
 Currencies                     Latest    Daily % change
 Brazil real                    5.5347    0.96
 Mexico peso                    21.1640   0.98
 Chile peso                     797.5     0.09
 Colombia peso                  3826.13   0.30
 Peru sol                       3.5787    0.03
 Argentina peso (interbank)     77.1400   -0.01
 Argentina peso (parallel)      163       -3.07
 (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Richard
Chang and David Gregorio)