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EMERGING MARKETS-Brazil's real recovers from low; still week's worst performer

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* Brazilian stocks at 11-month low * Real up Friday but still set to fall 3.2% over the week * Televisa drops after Q3 profit slide (Updates prices) By Ambar Warrick and Susan Mathew Oct 22 (Reuters) - Brazil's real recovered from a six-month low on Friday as the economy minister vowed he would stay on following an exodus from the Treasury department over plans to boost government spending. The real was up 0.5%, snapping a four-day losing streak, after having fallen more than 1% in the session. Four senior Treasury officials resigned on Thursday, amid signals that the government would try to increase the constitutional spending cap in order to boost welfare spending. The real remained the worst performing emerging market (EM) currency this week, set for a loss of 3.2%. But news that Economy Minister Paulo Guedes would remain in place, putting to bed rumors he would resign, and his appointment of a new official helped pare losses. Brazilian stocks were down 1%, having earlier fallen as by more than 4%, and were trading near 11-month lows, while benchmark 10-year bonds steadied at three-year lows. The outlook is still fairly bleak for Brazil's financial markets, said emerging market economist Thomas Mathews at Capital Economics. "Brazil's debt dynamics are likely to deteriorate significantly over time, perhaps more than is widely expected," he said. "Minimal real economic growth and an unpopular president looking to shore up support in advance of next year's election suggest, to us, that the risks of further fiscal spending splurges... are likely to remain high." Most other Latin American currencies firmed as the dollar slipped. Mexico's peso was the best performer for the day, rising 0.6% as data showed consumer prices rose more than expected in the first half of October. The reading saw investors pricing in more hawkish actions by the central bank, which has already hiked rates several times this year. Chile's peso inched higher. Chile's president on Friday named central bank chief Mario Marcel to a second term as the country's head monetary policymaker. Regional stocks traded mixed, tracking a similar session on Wall Street, where the Dow Jones Index and S&P 500 declined from record highs after U.S. Federal Reserve Chair Jerome Powell said the bank was "on track" to begin reducing its purchases of assets. Mexico's IPC index fell for a fourth straight session, with broadcaster Televisa dropping 3.4% after reporting a 77% drop in net profit for the third quarter. Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 1293.59 0.05 MSCI LatAm 2155.15 -0.63 Brazil Bovespa 106634.46 -1.02 Mexico IPC 51796.10 -0.43 Chile IPSA 4084.32 0.76 Argentina MerVal 87022.31 0.262 Colombia COLCAP 1406.75 -0.24 Currencies Latest Daily % change Brazil real 5.6417 0.45 Mexico peso 20.1845 0.54 Chile peso 816 0.15 Colombia peso 3771.11 0.20 Peru sol 3.961 -0.50 Argentina peso 99.4000 -0.02 (interbank) (Reporting by Ambar Warrick; editing by Philippa Fletcher and Rosalba O'Brien)

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