The Argentine peso declined for a third day on Wednesday and most Latin American markets weakened as worrying economic data from China and Germany and moves in US bond markets suggested a recession for major global economies is on the horizon as a bruising US-China trade war drags on.
The Brazilian real fell more than 1%, crossing the key 4-per-dollar level for a third day in a row. The Mexican, the Chilean and the Colombian pesos dropped between 0.6% and 0.8%.
There were few signs of the Argentine peso stabilizing as President Mauricio Macri announced measures including income tax cuts for workers and increased subsidies for social services after his shockingly poor showing in Sunday's presidential primaries.
The peso opened 12.3% weaker at 61 per US dollar, set for its third session of losses. The currency has shed more than 20% since Sunday when the center-right leader finished far behind his chief Peronist challenger, Alberto Fernandez, in primary elections, bringing worries of populist policies for financial markets.
Although the Merval stock index recovered slightly, the probability of a sovereign default by Argentina within the next five years shot up to 78%.
Among other stock markets, the Bovepsa fell 1.8% as Brazil's largest education company, Kroton Educacional SA, slid 7% after reporting quarterly results.
Planemaker Embraer dropped 3% after reaffirming it would report a loss for 2019.
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