【train horn for jeep wrangler jl】EMERGING MARKETS-Brazil's real firms against dollar, bucking Latam trend

By Aaron Saldanha Jan 2 (Reuters) - Brazil's real strengthened against the U.S. dollar on Wednesday,train horn for jeep wrangler jl a day after new President Jair Bolsonaro took power, on hopes of reform to the pension system of Latin America's top economy, while most other Latin American currencies softened against the greenback.

Brazil's new economy minister, Paulo Guedes, drafted a temporary executive decree for a pension reform that could save up to 50 billion reais ($13 billion) over the next decade, a report said.

"Strong opposition in congress is expected ... The strategy is to roll out a package of changes which don't require congressional approval," Citigroup head of emerging market strategy Dirk Willer and emerging markets FX strategist Kenneth Lam wrote in a note.

The news fed optimism in Brazil's securities markets. Sao Paulo's Bovespa stocks benchmark was trading up 0.4 percent on Wednesday, benefiting from gains in most sectors.

The real strengthened about 0.8 percent, while yields on local 10-year bonds neared a six-year low during the session. They last yielded 9.22 percent.

On Tuesday, former army captain-turned-lawmaker Bolsonaro promised to open foreign markets and enact reforms to reduce a yawning budget deficit, putting government accounts on a sustainable path.

Factory activity in China - an important destination for Brazil's resources exports - contracted for the first time in over two years in December.

Mexico's peso was little changed against the firm dollar, while the currencies of Chile and Colombia down 0.4 percent and 0.5 percent, respectively. Chilean stocks dipped 0.8 percent.

Argentina's peso weakened about 1.3 percent against the greenback.

Key Latin American stock indexes and currencies at 1413 GMT Stock indexes daily % Latest change MSCI Emerging Markets 950.47 -1.6 MSCI LatAm 2586.97 0.82 Brazil Bovespa 88244.88 0.41 Mexico IPC - - Chile IPSA 5066.74 -0.76 Argentina MerVal - - Colombia IGBC - - Currencies daily % change Latest Brazil real 3.8439 0.81 Mexico peso 19.6480 -0.03 Chile peso 696.3 -0.37 Colombia peso 3261 -0.49 Peru sol 3.373 -0.15 Argentina peso (interbank) 38.0000 -0.79 ($1 = 3.8446 reais) (Reporting by Aaron Saldanha in Bengaluru)

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