* Brazilian miners resume production in Minas Gerais
* Russian rouble volatile, bonds weaken
* Latam FX, stock muted in thin trade
(Writes through with Latam)
By Susan Mathew and Ambar Warrick
Jan 17 (Reuters) - Peru's sol led gains among its Latin
American peers on Monday after data showed the economy expanded
in November, while Russian assets remained under pressure as
tensions between Moscow and the West showed little sign of
easing.
The sol rose 0.7% to a more-than six-month high to
the dollar, after data showed the Peruvian economy grew by 3.5%
in November.
Still, the reading was its slowest pace of growth since
March, as the country's key mining sector remained pressured by
environmental protests.
Russia's rouble was flat against the dollar in
volatile trade, while investors continued to offload debt in the
country.
Yields on Russia's 10-year benchmark OFZ government bonds
stayed near six-year highs. Ukraine's
dollar-denominated sovereign bonds also fell and both countries'
default insurance costs jumped.
German Foreign Minister Annalena Baerbock said on Monday
that she hoped mounting tensions with Russia over Ukraine could
be solved by diplomacy, but she warned that Moscow would suffer
if it does attack the country.
Talks between Moscow and Western states on Russia's
deployment of tens of thousands of troops along Ukraine's border
ended with no breakthrough last week. A cyber attack against
Ukraine has further inflamed tensions.
"Geopolitical wobbles are shaking (Commonwealth of
Independent States) assets. As a result, both Ukrainian and
Russian lines cheapened versus their ratings. It seems that
rhetoric will continue to be the made driver of yields for the
time being," said EM strategists at TD Securities.
In China's troubled property sector, the biggest homebuilder
by sales, Country Garden, saw its bonds slump again up
to 17 points, leaving most of its international market debt at
25%-35% below its face value.
In Latin America, Brazil's real hovered near
two-month highs after economic activity rose a seasonally
adjusted 0.69% in November, marking its strongest monthly print
since February following four months of consecutive drops.
Still, prospects for the final quarter are weak, with
double-digit inflation weighing on consumption and investment
decisions.
Most other regional currencies fell
against a stronger dollar.
Stocks in Latam fell in thin trade owing to a holiday in the
United States, with Brazil's Bovespa retreating from a
near one-month high.
Shares of Brazil's Aliansce Sonae fell 2.3% after
it said it will keep pushing for a merger with shopping mall
operator BR Malls even after the rival turned down
its offer last week. BR's shares rose 2%.
Brazilian miners, including Vale SA began
resuming production in the southeastern state of Minas Gerais
after being forced to halt some operations due to heavy rains.
Key Latin American stock indexes and currencies:
Latest Daily % change
MSCI Emerging Markets 1255.24 -0.18
MSCI LatAm 2218.69 0.44
Brazil Bovespa 106844.69 -0.08
Mexico IPC 54172.44 0.8
Chile IPSA 4464.80 -0.48
Argentina MerVal 85019.75 -0.54
Colombia COLCAP 1514.55 5.78 Currencies Latest Daily % change
Brazil real 5.5189 -0.13
Mexico peso 20.2822 0.04
Chile peso 821.8 -0.36
Colombia peso 4003.26 0.00
Peru sol 3.8505 0.73
Argentina peso 104.0200 -0.15
(interbank)
(Reporting by Susan Mathew in Bengaluru; Editing by Frank Jack
Daniel)