Brazilian coach Carlos Alberto Parreira (left) and supervisor Mario Zagallo watch the players during training at the Melgar Stadium in Arequipa on Thursday

Lima: Brazil were regarding their first loss in a year as a helpful inconvenience, a wake-up call for their Copa America quarter final against Mexico on Sunday.

Brazil’s 1-2 loss to Paraguay’s Athens Olympic squad capped a dramatic end to the first round and set up highly-anticipated quarter final clashes this weekend.

Peru plays Argentina in Chiclayo on Saturday, followed by reigning champion Colombia against Costa Rica in Trujillo.

Then on Sunday, Paraguay meet Uruguay in Tacna while Brazil tackle Mexico in Piura.

Costa Rica claimed the last quarter-final berth on Wednesday by stealing a 2-1 victory against Chile deep in injury time at Tacna, and eliminated Chile and Bolivia.

Paraguay’s champion under-23 squad put a lid on Brazil’s hyperbole but not the world champion’s expectations.

Two opening wins by Brazil’s second-string outfit led coach Carlos Alberto Parreira to declare his team was ready to beat allcomers, but after he rested captain Alex, Mancini and Juan, Brazil lost to Paraguay for the first time at the Copa since 1979.

“Luckily this loss doesn’t set us back in our plans to reach the final, it came in a good moment,” said Parreira. “This should be a warning to us, a wake-up call. In the playoffs we won’t be able to make these mistakes.”

Brazil haven’t beaten Mexico in six meetings since 1999. “Mexico is very organised, motivated, plays strong, and has a lot of personality,” Parreira said. “It should be an interesting game.”

Mexico’s main concern on Thursday was for Jared Borgetti, whose return from his sister’s funeral in Mexico was unclear. Ramon Morales, whose free kick sank Argentina 1-0, was bothered by a right ankle injury but was expected to be ready on Sunday.

“We feel like we’re closing in on winning the title,” said coach Ricardo Lavolpe. “Mexico is playing very solidly and showing a winners’ attitude. We’re a team that fights and fights and leaves everything on the pitch.”

Mexico have made it to the quarter finals for the sixth time in six appearances, and the tricolours have failed to move on only once, in 1995.

Argentina coach Marcelo Bielsa’s biggest concern seemed to be choosing a striker between FC Barcelona’s Javier Saviola and Cruz Azul’s Luciano Figueroa. Saviola scored three goals against Ecuador but hasn’t struck since, while Figueroa put in two goals against Uruguay.

“We’re relaxed and confident,” said Inter Milan midfielder Cristian Gonzalez. “From here on out, it’s up to us to win and put the last few months behind us.”

Argentina will be without midfielder Javier Mascherano, who has too many yellow cards, and will be replaced by Villareal’s Fabricio Coloccini.

Yellow cards will also sideline Peru’s teenage striker Jefferson Farfan, who recently signed with PSV Eindhoven. The good news was captain Claudio Pizarro had successful surgery in Germany on Thursday for the fractured skull injury he suffered in an on-field collision in Lima last Friday.

Peru, still not talking to its home press, was considering replacing Farfan by pairing Andres Mendoza and Flavio Maestri up front, or promoting midfielders Pedro Garcia or Roberto Palacios. The host’s last victory against Argentina was also their last meeting at the Copa, in the 1997 quarter finals.

“Peru closed out the first round playing well,” said Argentina midfielder Juan Pablo Sorin. “It will be extra tough with them playing at home.”

Defending champion Colombia will play Costa Rica without Arley Dinas and Gonzalo Martinez, who accumulated two yellow cards each, but their nine-game unbeaten run in the Copa since 2001 has made the Colombians highly confident.