Nov 29 (Reuters) - Chile"s peso fell 1.3% on Monday after recent polls showed leftist presidential candidate Gabriel Boric leading ahead of a Dec. 19 election run-off, while shares of LATAM Airlines plummeted after the company"s restructuring plan. Chile"s currency extended declines to a fifth straight session. Chilean markets had rallied strongly after first round elections this month had seen far-right Jose Antonio Kast take the lead. Markets tend to cheer conservative candidates on hopes of their typically business-friendly stance. read more Eyes are now on which way citizens who had voted for economist Franco Parisi in the first round will sway in the run-off. Citigroup strategists note polls suggest they could sway towards Boric, further raising investor worries. Santiago-listed stocks (.SPIPSA) slipped 1.6% with LATAM Airlines (LTM.SN), the largest air transport group in Latin America, plummeting 45% following a restructuring plan that would dilute shares in the company. read more Concerns about the latest COVID-19 variant, Omicron, ebbed slightly as experts said its symptoms were so far mild and could be treated at home. But travel restrictions have raised fears about curbing a nascent global economic recovery. But bets have risen that Omicron uncertainty could force central banks to delay monetary policy tightening, which would bode well for riskier assets. Mexico"s peso jumped 1%, breaking a seven-session losing streak over which it lost almost 6% and touched over one-year lows. The currency has been recently hit by data showing an economic slowdown and rising inflation, and fears surrounding the spread of the coronavirus with the number of cases closer to four million. However, Mexican President Andres Manuel Lopez Obrador said there was no reason to worry about the new variant. read more Against a stronger dollar Brazil"s real , slipped 0.4%, while surging oil prices did little for exporter Colombia"s peso which hit 19-month lows. Brazilian miner Vale (VALE3.SA) cut the top end of its 2021 iron ore production forecast, but rallying prices of the steel-making ingredient kept share buoyed. read more In political news, Honduran presidential candidate Xiomara Castro was headed for a landslide win as election results rolled in on Monday, and looked set to put the left back in power 12 years after her husband was ousted in a coup. read more Yields on Honduran dollar bonds fell sharply, with the 2030 bond yield slipping from one-month highs. Elsewhere in emerging markets, Turkey"s lira sank almost 4% to near record lows, after President Tayyip Erdogan held his stance for rate cuts - a policy which had sent the lira crashing to al-time lows. read more