EMERGING MARKETS-Latam markets slip as rising US yields, stronger dollar weigh; Mexico stocks rise

* Santander Brasil’s Q3 net profit falls 12.5% * Mexico’s Alsea posts quarterly net profit surge * Brazil’s WEG slumps as Q3 shows fading revenue growth * Latam equities down 0.4%, FX down 0.1% (Updated at 3:50pm ET/1950 GMT) By Johann M Cherian and Lisa Pauline Mattackal Oct 25 (Reuters) – Most Latin American stocks and currencies slipped Wednesday as investors assessed corporate earnings and a rising U.S. dollar and Treasury yields weighed on global risk appetite, though Mexico’s benchmark stock index outperformed on hopes for stronger growth. MSCI’s gauge for Latin American equities was down 0.4% while a basket of regional currencies edged down 0.1% against the dollar. Yields on longer-dated U.S. Treasury notes rose as the U.S. dollar strengthened to a one-week high, as underwhelming corporate results in the U.S. raised concerns over the economic strength of the world’s largest economy However the Mexican stock index rose 0.9%, eyeing its strongest session in over two weeks. A senior finance ministry official said the economy could expand by 3.5% or more this year and largely dismissed concerns that the rising value of the local currency since August was bad for the country’s exports. However, Mexico’s currency fell 0.4%. Colombia’s peso was the region’s top performer, rising 0.7% after China elevated diplomatic relations with the country to a strategic partnership. Emerging markets assets have been under pressure as rising U.S. Treasury yields diminish the relative attractiveness of riskier assets and as investors sour on risk amid an uncertain monetary policy environment. However, some market watchers pointed to potential tailwinds after top consumer China’s parliament body approved $137 billion in sovereign bond issuance to help boost the economy and infrastructure. “Anything that’s pushing the global recovery narrative and the second-largest-economy China being healthy is going to be good overall as well for Latin America,” said Juan Perez, director of trading at Monex USA. Currencies of top copper producers in the region reversed earlier gains as the stronger dollar weighed on metal prices, with Peru’s sol down 0.31% and Chile’s peso was little changed on the day. Brazil’s Bovespa, Colombia’s Colcap and Chile IPSA fell between 0.1% and 0.8%, also weighed down by corporate earnings. Among single movers, WEG sank 10% after the manufacturer of electric motors and industrial paints reported revenue below analysts’ expectations in the third quarter. Mexico-listed Alsea gained 5% after the restaurant chain operator posted a 56% jump in quarterly net profit, boosted by strong sales in its Mexico stores and a drop in some commodity prices. Santander Brasil the Brazilian unit of the Spanish lender reported a 12.5% decline in third-quarter net profit. Shares slipped 1.5%. Elsewhere, Argentina’s peso continued to strengthen in trading on the informal parallel market, rising to 980 per dollar after slumping earlier in the week after election results. Key Latin American stock indexes and currencies at 1920 GMT: Latin American market Latest Daily % prices from Reuters change MSCI Emerging Markets 920.78 0.02 MSCI LatAm 2185.96 -0.42 Brazil Bovespa 112829.97 -0.82 Mexico IPC 48691.39 0.85 Chile IPSA 5515.62 -0.76 Argentina MerVal 686238.16 4.907 Colombia COLCAP 1104.19 -0.14 Currencies Latest Daily % change Brazil real 4.9981 0.04 Mexico peso 18.3227 -0.41 Chile peso 925.2 0.00 Colombia peso 4180.6 0.72 Peru sol 3.862 -0.31 Argentina peso 349.9500 0.01 (interbank) Argentina peso 980 12.24 (parallel) (Reporting by Johann M Cherian and Lisa Mattackal in Bengaluru; Editing by Rod Nickel)