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EMERGING MARKETS-Rouble slides as Germany says Navalny poisoned with Novichok, Brazil's real gains

    * Brazil central bank sees growth of 4% or more in 2021
    * Dollar firms as U.S. data signals improving economy
    * LatAm equities slide after best day in three months
    * Chilean peso, Mexican peso among biggest FX decliners

    By Sagarika Jaisinghani
    Sept 2 (Reuters) - The Russian rouble slid 2% on Wednesday
after Germany said Kremlin critic Alexei Navalny had been
poisoned with a nerve agent of the Novichok family, while the
Brazilian real rose as data signaled a stable post-pandemic
economic recovery.
    After having opened slightly weaker against the U.S. dollar,
the rouble tumbled 2.4% to 75.30 in reaction to
the German comment. Versus the euro, the rouble
fell 1.5% to 88.93.
    The real firmed for a second straight session as data
showed factory gate inflation rose at its fastest pace in July,
driven by increasing food costs and the price of oil and
biofuels products.
    A selloff in the currency has eased recently amid
stronger-than-expected macroeconomic data, including record
growth in manufacturing activity last month.
    Central bank chief Roberto Campos Neto said on Wednesday
Latin America's biggest economy was on course to shrink by about
5% this year and grow by 4% or more in 2021, stressing the
importance of the government resuming its agenda of strict
fiscal discipline.
    A wider index of Latin American currencies
eased 0.4% as the dollar bounced off two-year lows following
upbeat factory activity data in some of the world's biggest
economies.
    "Solid economic data out of the United States and China are
giving investors hope that the global economy might recover
faster than expected from the COVID-19 crisis," said Milan
Cutkovic, market analyst at AxiCorp.
    "This is an important signal for markets, which have already
priced in a lot of positive news."
    A basket of Latin American equities fell
0.7% after posting its best session in three months on Tuesday.
Losses were led by bourses in Brazil and Argentina
, while the Colombian stock index bucked the
trend to gain about 1%.
    Brazilian miner Vale SA slid 1.4% as it said in a
filing it failed to meet safety standard levels for three dams
in Minas Gerais state, adding it did not see any impact on iron
ore production this year.
    The Chilean peso eased 0.2%. The country's central
bank softened its prediction for an economic contraction in 2020
in the world's top copper producer, saying on Wednesday the
gradual easing of coronavirus-led lockdowns and "support for
household income" had helped bolster the flailing economy.

    Chile's currency has bounced about 14% from its March lows
to trade near its January high of 749.93 to the dollar.
    By contrast, the Mexican peso is still about 15%
below its own pre-pandemic highs. On Wednesday, it eased another
0.2%, with President Andres Manuel Lopez Obrador saying the 2021
budget will call for spending on priority infrastructure and
will not raise taxes.
    The finance ministry is due to present the new budget on
Sept. 8.
    
    Key Latin American stock indexes and currencies:     
     Stock indexes              Latest    Daily % change
 MSCI Emerging Markets           1116.48           -0.32
                                          
 MSCI LatAm                      2003.41           -0.68
                                          
 Brazil Bovespa                101469.05           -0.68
                                          
 Mexico IPC                     37070.86           -1.11
                                          
 Chile SPIPSA                    3801.47            1.29
                                          
 Argentina MerVal               45700.55          -1.815
                                          
 Colombia Colcap                 1268.23            0.99 Currencies              Latest    Daily % change
 Brazil real                      5.3662            0.34
                                          
 Mexico peso                     21.8270           -0.17
                                          
 Chile peso                        772.8           -0.21
                                          
 Colombia peso                    3646.7            0.63
 Peru sol                         3.5297           -0.08
                                          
 Argentina peso (interbank)      74.3100           -0.08
                                          
 
 (Reporting by Sagarika Jaisinghani in Bengaluru; Editing by
Lisa Shumaker)
  
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