Stocks in Brazil steadied on Wednesday as market focus remained on the government's proposal for pension reform, which is aimed at helping curb the country's mounting fiscal deficit.
Latin American currencies were mixed against a slightly softer dollar with investors waiting for the US Federal Reserve's January policymaking minutes expected later in the day.
Shares on the Bovespa index in Sao Paulo rose marginally but losses by Engie Brasil Energia which reported a 49.6 percent increase in net debt at the end of the fourth quarter, capped gains on the index.
Investors were scrutinizing details of the pension proposal Brazilian President Jair Bolsonaro delivered to Congress which aims to save more than 1 trillion reais ($270 billion) in 10 years for public coffers.
The proposal predicts a sharp tightening in the granting of welfare benefits and an increase in the social security contribution rate for different salary ranges.
"The pension reform is the key thing for the Brazilian economy right now," said Christian Lawrence, senior market strategist, LatAm FX, Rabobank.
The proposed reform is the cornerstone of Bolsonaro's plan to close what rating agencies say is an unsustainable public deficit and bolster a sluggish economic recovery.
Currencies in the region were mixed with Brazil's real holding on to gains but Mexico's peso losing over 0.2 percent as oil prices slipped.
Investors are also on watch for the Federal Open Market Committee (FOMC) minutes from its January meeting slated to release at 2 pm ET (1900 GMT).
The minutes are expected to reaffirm the Federal Reserve's statement last month that it would be "patient" with further rate hikes after markets swooned late in December on fears of an economic slowdown.
"Most of the dovish stance has already been factored in so unless there is something really surprising in those minutes, it's less likely to move the markets," said Lawrence.
The Chilean peso edged higher, with copper prices helping, while stocks on the IPSA index rose over 0.4 percent led by gains in Banco De Chile.
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