* Argentine equities set for 4% weekly gain * Peso stabilizes after record low earlier this week * Brazilian stocks set for longest winning streak in over a month By Niket Nishant Oct 24 (Reuters) – Argentina's stocks rose 0.8% on Friday and were on track to end the week with a 4% gain ahead of a crucial midterm vote that could determine the fate of President Javier Milei's economic reform agenda and shape future ties with Washington. Milei's close relationship with U.S. President Donald Trump helped secure a $20 billion swap line from the Treasury Department to shore up the peso, which hit a record low against the dollar earlier this week and was up 0.2% on Friday. Trump has hinted that further support may hinge on how well Milei's party performs in the election. "The midterm congressional election results will help investors understand the potential support the administration receives for reform continuity," said Pedro Leduc, an analyst at Itau BBA. "This, in turn, impacts the outlook for inflation and interest rates, and consequently, the credit banking business outlook and its multiples." Still, traders expect some weakness ahead for the peso, with one-month forwards pricing the currency at around 1,542.9 per dollar versus about 1,484 currently in the spot market, according to data from Fenics. Some of the country's dollar bonds also crept higher. BRAZIL GAINS, TRADE DEAL AWAITED Brazil's Ibovespa also gained 0.4% and was poised for its longest winning streak in more than a month after data showed weaker-than-expected inflation. Sentiment was helped by Wall Street, where benign inflation data boosted stocks. The real was flat. An index tracking Colombian equities looked to notch the third straight day of gains. The country has come under scrutiny because of President Gustavo Petro's spat with Trump. Petro on Thursday said a suspension of aid from the United States would have little impact but changes to military funding could have some problems. In Mexico, stocks were up 0.1%. Mexican President Claudia Sheinbaum on Thursday said she did not agree with U.S. strikes on boats off the coast of South America. Peru's Lima stock exchange resumed its fall after a one-day reprieve and was on pace to end the week with a 2.2% loss. Overall, MSCI's gauge of Latin American equities rose 0.4%, while an equivalent index tracking regional currencies was subdued. The indexes were poised to end the week with gains of 1.9% and 0.8%, and future performance will be determined by a string of local earnings as well as international factors. Trump is scheduled to meet with China's President Xi Jinping next week at a meeting that many investors are hoping will defuse tensions and lay the groundwork for growth, benefiting emerging markets that rely heavily on global risk appetite and external capital flows. Geopolitical optimism was tempered earlier this week after Russia was placed under fresh sanctions from the U.S. and the European Union. Key Latin American stock indexes and currencies: Equities Latest Daily % change MSCI Emerging Markets 1389.88 0.62 MSCI LatAm 2530.31 0.35 Brazil Bovespa 146228.78 0.44 Mexico IPC 61552.93 0.11 Chile IPSA 9235.54 0.94 Argentina Merval 2074050.57 0.901 Colombia COLCAP 1927.47 0.13 Currencies Latest Daily % change Brazil real 5.3817 0.01 Mexico peso 18.3658 0.15 Chile peso 943.22 0.11 Colombia peso 3851.7 0.67 Peru sol 3.3776 0.3 Argentina peso (interbank) 1484 0.20 Argentina peso (parallel) 1490 2.35 (Reporting by Niket Nishant in Bengaluru Editing by Marguerita Choy)
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