(Updates prices, adds details on Mexican stock index) SAO PAULO, Dec 5 (Reuters) - Mexico's S&P/BVM IPC share index rose 0.64 percent on Tuesday, recovering some ground after falling last week to its lowest level since March.
Banorte bank pushed the gains, with its shares rising 2.60 percent as it announced that shareholders approved its acquisition of Grupo Financiero Interacciones, a deal that will create the country's second-biggest bank.
The Mexican peso weakened in response to a strengthening dollar, as the U.S. Congress moved closer to a major tax overhaul.
Brazil's benchmark Bovespa index dipped, with a still unclear outlook on whether the government would get the votes needed to pass pension legislation that could boost Brazil's fiscal health.
Pension reform has been the dominant factor in the Bovespa's performance for weeks.
The index slipped 0.74 percent on Tuesday while the real currency fell 0.25 percent.
Rodrigo Maia, the speaker of Brazil's lower house, told journalists late on Monday that President Michel Temer was still far from assembling the coalition needed to pass the reform, but potential supporters were now more organized than last week.
Chile's benchmark IPSA index extended recent falls, dropping 1.78 percent as markets brace for a Dec. 17 second-round presidential vote that will pit investor favorite ex-President Sebastian Pinera against center-left Alejandro Guillier.
Hard-left Beatriz Sanchez formally endorsed Guillier late on Monday, after claims by Pinera that vote-tampering took place in the first round were widely criticized.
The Chilean index's decline has roughly tracked the price of copper, which on Tuesday suffered its biggest drop in two years.
Key Latin American stock indexes and currencies at 2152 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 1,117.69 -0.38 29.62 MSCI LatAm 2,743.19 -0.27 17.2 Brazil Bovespa 72,546.17 -0.74 20.45 Mexico IPC 47,462.79 0.64 3.99 Chile IPSA 4,925.21 -1.78 18.64 Chile IGPA 24,808.21 -1.69 19.65 Argentina MerVal 26,483.00 -1.31 56.54 Colombia IGBC 10,838.64 0.27 7.02 Venezuela IBC 1,345.89 -4.52 -95.75 Currencies Daily YTD pct pct change Latest change Brazil real 3.2414 -0.25 0.24 Mexico peso 18.7670 -0.81 10.53 Chile peso 653.65 -0.90 2.61 Colombia peso 2,992.1 -0.14 0.31 Peru sol 3.237 -0.12 5.47 Argentina peso (interbank) 17.2800 0.46 -8.13 Argentina peso (parallel) 17.91 0.89 -6.09 (Reporting by Gram Slattery and Daina Beth Solomon; Editing by Andrew Hay and Rosalba O'Brien)