Latin American stocks were flat on Monday, partly subdued by delays in important pension reform in Brazil, while currencies in the region rose against a weak dollar but Argentina's peso hovered around record-low levels on political uncertainty.

MSCI's index of Latin American stocks was little changed with stocks in Colombia's IGBC index leading gains.

Sao Paulo-traded stocks rose for a third straight day led by shares of energy companies as oil prices hit five-month highs.

Brazil's Petrobras was among the top gainers after the state-controlled oil firm agreed to sell 90 percent its Associated Gas Carrier (TAG) unit for $ 8.6 billion to French utility firm Engie to helps cut debts.

Focus also remained on Brazil's social security reform, but investors are worried about a delay and changes made to the original pension reform promised by President Jair Bolsonaro.

An opinion poll by DataFolha released on Sunday shows

Bolsonaro is facing the lowest approval rate for a first-term Brazilian president through 100 days among all elected predecessors since the country's return to democracy in the late 1980s.

Although the external environment is helping Brazil, focus is still on the political landscape, said Guilherme Foureaux, partner and portfolio manager at Paineiras Investimentos.

Mexican stocks fell 0.2 percent while the peso gained over 0.4 percent on the back of higher oil prices.

Chile's peso rose about half a percent on gains in the price of copper, the country's top export, while stocks on the IPSA index were marginally lower.

Data showed Chile had an inflation rate of 0.5 percent in March and consumer prices rose 2.0 percent in the 12 month period.

Argentina's peso recovered slightly from a record low hit on Friday as lower interest rates on peso-denominated bonds combined with political and economic uncertainty continue to put pressure on the currency.

The International Monetary Fund said although Argentina's economy would likely contract at a lower rate than previously forecast, the October presidential election was the "most visible near-term risk," and could raise market anxiety and lead to larger-than-expected peso outflows.

The IMF's executive board ratified its third review of Argentina's economic progress under a major financing deal agreed last year, unlocking a roughly $10.8 billion tranche of funds.