EMERGING MARKETS-Mexico's peso edges up on likelihood of more rate hikes

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* MSCI Latam stocks rise 1.3%, currencies up 0.5% * Mexico's peso edges higher on interest rate hike bets * Chile's peso gains 0.3% as copper prices climb * Colombia GDP data due at 1200 EST/0400 GMT; peso jumps By Anisha Sircar and Bansari Mayur Kamdar May 16 (Reuters) - Mexico's peso inched higher on Monday as central bankers hinted at more interest rate hikes to control surging inflation, while most other Latin American currencies eked out gains with a cautious eye on the dollar's flirtation with two-decade highs. MSCI's index of Latam currencies rose 0.5% as the dollar index consolidated gains near a 20-year peak hit last week. Stocks rose 1.3%. Mexico's peso gained 0.3% against the dollar. Mexican central bank Governor Victoria Rodríguez said in an interview https://www.elfinanciero.com.mx/economia/2022/05/14/plan-de-amlo-contra-la-inflacion-llevara-un-tiempo-sera-gradual-rodriguez-ceja published on news platform El Financiero over the weekend that the bank was ready to hike its monetary policy rate faster, if necessary. On Friday, Bank of Mexico board member Jonathan Heath said there is still a "way to go" on tightening policy following the bank's 50-basis-point rate hike to 7.0% last week. "Latin American currencies seem better for emerging market investors and definitely places like Brazil, with people thinking they might be closer to the end of their tightening cycles versus some other countries that have a lot more to come," said Rachel Ziemba, founder of Ziemba Insights. A flight of capital from Asian markets due to recent dour macroeconomic data from China, as well as outflows from Europe, are boosting Latam assets, Ziemba added. Brazil's real advanced 0.4% before trimming its gains after central bank figures showed government debt as a share of gross domestic product fell to 78.5% in March from 79.2% in February. Chile's peso rose 0.3% as copper prices firmed after China's plans to ease COVID-19 curbs raised demand hopes. A constitutional assembly in Chile, the world's top producer of copper, on Saturday rejected a major overhaul to mining rights. Brazilian state-run oil firm Petrobras SA and metal and mining company Vale SA climbed more than 2% each, tracking firm commodity prices and lifting Brazil's Bovespa by 0.8%. Colombia's peso added 0.8%, set for its best day in more than a month, ahead of GDP data due later on Monday. The economy is expected to have grown by 7.5% in the first quarter from a year ago. Peru's sol was little changed after official figures showed the economy grew 3.79% in March compared with a year earlier, lower than the central bank's 4% forecast, with the key mining industry shrinking as social conflicts hit production. Elsewhere, the Russian rouble strengthened past 64 to the dollar and to its highest level in nearly five years against the euro, supported by restrictions on currency trading. Key Latin American stock indexes and currencies at 1500 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1006.73 0.22 MSCI LatAm 2276.25 1.44 Brazil Bovespa 107707.36 0.73 Mexico IPC 49721.23 0.29 Chile IPSA 4904.12 1.11 Argentina MerVal 89129.48 0.376 Colombia COLCAP 1520.16 0.53 Currencies Latest Daily % change Brazil real 5.0592 -0.05 Mexico peso 20.0870 0.00 Chile peso 857.5 0.33 Colombia peso 4075.85 0.68 Peru sol 3.77 0.48 Argentina peso 117.8700 -0.37 (interbank) Argentina peso 201 1.24 (parallel) (Reporting by Anisha Sircar in Bengaluru; Editing by Paul Simao)

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