News: BHP UPDATE 1-Chile peso sails higher after voters reject new constitution

(Adds peso move, comments, background, updates prices)

LONDON, Sept 5 (Reuters) - Chile's peso soared to its strongest level in nearly three months on Monday after Chileans rejected a proposed new constitution in a move widely expected by analysts to be positive for the country's financial markets.

Chileans voted overwhelmingly on Sunday to reject what would have been one of the world's most progressive charters, that would have marked a sharp shift from its market-friendly constitution dating back to the Augusto Pinochet dictatorship.

The country's currency strengthened more than 4% against the dollar as local markets opened to touch 838.20 CLP= , levels last seen on June 10, Refinitiv pricing data showed. Giving away some of its early gains, the currency last changed hands at 846.90.

"The outcome may force a more moderate and gradual reform impulse," said JPMorgan's Diego Pereira in a note to clients, adding that he expected positive market momentum thanks to less uncertainty and lower risk premia ahead.

"We believe both real and financial investors would prefer that if the current constitution has to be reformed, it’s done by the Congress or a committee of notables."

London-listed miner Antofagasta ANTO.L saw its shares gain 3.4% on Monday, outpacing gains in the STOXX Basic Resources Index .SXPP , which was up 1%.

Chile is the world's top copper producer and is home to global copper giants like Codelco, BHP (BHP) , Anglo American AAL.L and Glencore GLEN.L as well as Antofagasta.

Chile's peso CLP= has fallen some 3% since the start of the year, making it an outlier in the Latin America region, which has seen currencies from Brazil's real BRL= , Peru's sol PEN= and Mexico's peso MXN= chalk up solid gains in 2022.