EMERGING MARKETS

* Mexican peso extends rally for sixth day * Brazil approves fiscal rules aimed at preventing public debt spike * South Africa says BRICS nations have agreed expansion mechanisms * Latam FX up 0.7%, stocks rise 1.7% By Bansari Mayur Kamdar Aug 23 (Reuters) - The Argentinian peso slipped against the dollar in popular black market and stocks rose on Wednesday as investors waited for International Monetary Fund (IMF) board to discuss the embattled Latin American country's huge loan program. The peso slipped to 720 against the dollar in informal markets in early trading in Buenos Aires, while the S&P Merval index climbed 1.1%. Argentine Economy Minister Sergio Massa said on Tuesday that he expects the IMF board to approve the latest reviews of its $7.5 billion loan program on Wednesday. The IMF's executive board will discuss the much needed disbursement to the embattled South American nation after it reached a staff level agreement on two combined program reviews in July. Massa added that a sharp peso devaluation in Argentina earlier this month would push up August inflation, a challenge for the government as it looks to claw back support ahead of Oct. 22 general elections. Authorities devalued the official currency by 18% and pegged it at 350 per dollar after a surprise primary election victory by libertarian Javier Milei sparked a currency and bonds rout. "Weak fiscal fundamentals are at the core of Argentina's macroeconomic problems," said Goldman Sachs' Sergio Armella, in a note. "(We) believe that whoever is elected president will have to holistically review the program with the Fund as part of a more comprehensive macroeconomic program that puts the economy on a structurally more sustainable trajectory." Investors also awaited Argentina's economic activity data due later in the day, where its economy is estimated to have contracted by 4% in the 12-month reading through June. In Brazil, the lower house on Tuesday approved a new fiscal framework proposed by President Luiz Inacio Lula da Silva that advocates deem crucial for preventing an escalation in public debt. The Brazilian real strengthened 1.1% against a slightly soft dollar at 1445 GMT. The BRICS group of nations, comprising Brazil, Russia, India, China and South Africa, have adopted a document that sets out guidelines and principles for the group's expansion, said South Africa's Foreign Minister Naledi Pandor. Improved demand prospects of top consumer China supported copper prices lifting currencies of top producers Chile and Peru up 1.0% and 0.5%, respectively. Mexico's peso gained 0.6% against the greenback, rallying for sixth straight session, while Colombia's peso rose 0.7%. Elsewhere in emerging markets, Zambia's central bank raised its benchmark lending rate by 50 basis points to 10%. The South African rand rallied 1.6% against the dollar after July inflation data came in lower than expected. An Indian spacecraft landed on the rugged, unexplored south pole of the moon in a mission seen as crucial to lunar exploration and India's standing as a space power. "From investors' point it gives a sense of direction that both hardware and software capabilities are available in India with a cost effective tag attached to it," said Sameer Kalra, founder of Target Investing. Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 970.78 0.42 MSCI LatAm 2408.27 1.65 Brazil Bovespa 117402.38 1.07 Mexico IPC 53215.36 0.16 Chile IPSA 6193.32 0.55 Argentina MerVal 600566.80 1.115 Colombia COLCAP 1112.91 -0.25 Currencies Latest Daily % change Brazil real 4.8869 1.02 Mexico peso 16.8156 0.51 Chile peso 860.3 1.00 Colombia peso 4080.02 0.73 Peru sol 3.7118 -0.02 Argentina peso (interbank) 349.9500 0.01 Argentina peso (parallel) 720 -0.42 (Reporting by Bansari Mayur Kamdar in Bengaluru Editing by Marguerita Choy)

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