EMERGING MARKETS-Trade uncertainty casts a pall on Latam currencies; Brazil's real hits life low

By Medha Singh and Agamoni Ghosh

(Updates prices; adds quote, news items) * Brazil's real hits record low * Beijing 'pessimistic' on trade deal -CNBC report * Argentina, Mexico stock markets shut for holiday By Medha Singh and Agamoni Ghosh Nov 18 (Reuters) - Latin American currencies started the week with declines as conflicting headlines surrounding U.S.-China trade talks kept investors on the sidelines, while Brazil's real closed at an all-time low. MSCI's index for Latin American currencies slipped 0.3%, resuming its downward trend as it fell for the tenth time in the last eleven sessions. Sentiment took a hit earlier in the day after CNBC reported that the mood in Beijing was "pessimistic" because of U.S. President Donald Trump's reluctance to roll back tariffs. However, the Trump administration issued a new 90-day extension that allowed U.S. companies to continue doing business with China's Huawei Technologies Co Ltd , which tempered the initial losses. "This week, we are going to be range-bound but that range will be decided by the trade headlines," said Christian Lawrence, senior market strategist at Rabobank. A slide in oil prices also weighed on currencies of net crude exporters such as Mexico and Colombia's peso . REAL CURRENCY AT LIFE LOW Brazil's real reversed course to drop marginally as traders pushed the currency through the key level where the central bank had intervened in August by selling dollars on the spot market. "Looking at the fundamentals, the real at 4.20 per U.S. dollar, does not seem to justify its level," said Wilson Ferrarezi, Brazil economist at TS Lombard. "This could indicate the currency is oversold, especially because important reforms like the pension reform have already been approved by the Congress." The currency has dropped about 8% this year as the economy sluggishly recovers from a deep recession and struggles to cope with a mounting fiscal deficit. Stocks in Sao Paulo were marginally lower as investors returned from a long weekend. Among prominent movers, Marfrig Global Foods SA rose 5% after the food processor announced it raised its stake in U.S. meatpacker National Beef Packing Company to 81.7% from 51%. The Chilean peso fell slightly as a drop in copper prices hit the currency of the world's biggest producer of the red metal. The peso had jumped about 4% in the prior session as lawmakers on Friday agreed to hold a referendum to overhaul the country's dictatorship-era constitution. Chile's stocks pared back slightly after posting their best one-day percentage jump in 11 years in the previous session. Trading was subdued on Monday as stock markets in Mexico and Argentina were shut for holidays. Key Latin American stock indexes and currencies at 2010 GMT: Stock indexes daily % change Latest MSCI Emerging Markets 1051.32 0.24 MSCI LatAm 2675.09 -0.54 Brazil Bovespa 106480.95 -0.07 Mexico IPC - - Chile IPSA 4814.17 -0.97 Argentina MerVal - - Colombia IGBC 0.00 0 Currencies daily % change Latest Brazil real 4.2054 -0.24 Mexico peso 19.3022 -0.65 Chile peso 775.53 -0.46 Colombia peso 3439.5 -0.47 Peru sol 3.372 -0.27 Argentina peso (interbank) - - (Reporting by Medha Singh and Agamoni Ghosh in Bengaluru)