* Mexico's peso falls after surprise rate cut * Argentine bond risk spreads widen on possible default * Oil rebound buoys Colombian peso * Latam stocks rise with stimulus measures in focus (Updates prices) By Ambar Warrick and Susan Mathew April 22 (Reuters) - Brazil's real sank to a record low on Wednesday, and Mexico's peso took no relief from an oil rebound as increasing signs of economic distress from the coronavirus outbreak spurred safe-haven bids for the U.S. dollar. Returning after a day's holiday, the real plunged as much as 1.7% to a record low of 5.4136 before cutting some losses to trade at 5.4026. Data showed the country's March tax revenue was its lowest in 10 years due to the pandemic. The currency, in tandem with the broader emerging market, has faced continued outflows due to rampant risk aversion prompting a safety rush to the dollar. "Portfolio investments will remain under the pressure of the risk-off global sentiment over the coming months, which will keep the BRL under pressure through the rest of the year," wrote TS Lombard economists Wilson Ferrarezi and Elizabeth Johnson. They added that fiscal uncertainties continued to blur Brazil's economic outlook due to concerns over the government's ability to add new debt, as well as disparity over a bailout package for state and municipal governments. A rebound in oil prices buoyed crude producer Colombia's peso. Over the last two sessions, a collapse in crude prices has pressured currencies of oil exporting countries such as Russia's rouble and Mexico's peso. The latter, however, extended losses to a third session after Mexico's central bank on Tuesday unexpectedly cut borrowing costs by 50 basis points and unveiled a $31 billion stimulus package in its most decisive move yet to combat the virus. "Banxico's decision is less surprising when considering the fast-deteriorating economic activity outlook, which contrasts sharply with the relatively muted government reaction seen so far," wrote Gustavo Rangel, chief Latam economist at ING. Credit Suisse analysts expect another 50-basis-point cut next month, which would take the overnight rate to 5.5%. The country's economy, already seen as weak before the outbreak, is now pegged by the central bank to contract by more than 5% in the first half of 2020. In Argentina, bonds fell and its country risk spread widened as the market braced for the expected nonpayment of $500 million in interest on government bonds, which would kick off a 30-day grace period before default is declared. The rhetoric by Finance Minister Martin Guzman continues to suggest that the government will probably not be very flexible during upcoming negotiations, noted Credit Suisse analyst Juan Lorenzo Maldonado. Most regional stock indexes rose, in line with Wall Street, supported by optimism over measures from the United States, Mexico and South Africa to cushion the economic shock from the coronavirus outbreak. Brazil's bovespa led gains, up 2%. Key Latin American stock indexes and currencies at 1901 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 888.35 1.15 MSCI LatAm 1618.89 0.65 Brazil Bovespa 80664.86 2.14 Mexico IPC 34320.54 1.26 Chile IPSA 3693.88 1.12 Argentina MerVal 30542.19 1.009 Colombia COLCAP 1128.44 -0.25 Currencies Latest Daily % change Brazil real 5.4030 -1.60 Mexico peso 24.5580 -0.67 Chile peso 857 0.18 Colombia peso 4029.08 0.21 Peru sol 3.3708 0.41 Argentina peso 66.2200 -0.20 (interbank) (Reporting by Ambar Warrick in Bengaluru; editing by Jonathan Oatis)
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