EMERGING MARKETS-Latam markets rally as upbeat U.S., China data lift sentiment

 (Adds latest market numbers, comments)
    By Susan Mathew and Sruthi Shankar
    Nov 1 (Reuters) - Most Latin American currencies made
healthy gains on Friday, putting an index of regional currencies
on track for a third week of gains, while Brazil stocks scaled
new highs as positive data from the United States and China
lifted global sentiment.
    Brazil's real rose 0.3% to just below 4 per dollar.
The currency was on track to post a second straight week of
gains, boosted by optimism over the Brazilian Senate's final
approval of a pension reform bill and the central bank hinting
at a pause on further interest rate cuts.
    "Progress on the reform agenda should continue removing risk
premium from Brazilian assets," Claudio Irigoyen at Bank of
America Merrill Lynch wrote in a client note.
    "Furthermore, the government's scheduled auction of
"transfer of rights area" (TOR) fields in November could
represent a substantial inflow of dollars to the economy, which
should strengthen the currency."
    A blockbuster auction of oil prospecting rights for the
enormous offshore transfer of rights area is set to take place
on Nov. 6. The winning bidders will be obliged to pay the
government a combined signing bonus of some 106.5 billion reais
($25.8 billion).
    The dollar had gained ground after data showed U.S. job
growth slowed less than expected in October. But gains were
dented by weak U.S. manufacturing activity.
    Signs the United States and China may be close to reaching a
trade deal also knocked demand for the safe-haven dollar.

    Surprisingly upbeat factory activity data from China also
alleviated some fears of a complete downturn in global growth.

    Brazil's shares shot to new highs, with stock of
pulp and paper company Suzano topping the main index
 after reporting quarterly results.
    Iron ore miner Vale rose as it said operations at
its Alegria mine were set to restart. 
    Mexico's peso rose 0.5% and the Colombian peso
firmed by 1.8, taking MSCI's index of Latam currencies up 0.4%
on the day and the week.
    Chile markets were closed for a national holiday.
    Key Latin American stock indexes and currencies at 1954 GMT:
       Stock indexes                 Latest      Daily %
 MSCI Emerging Markets                1049.09          0.68
 MSCI LatAm                           2813.83          1.31
 Brazil Bovespa                     108193.60          0.91
 Mexico IPC                          43810.67          1.09
 Chile IPSA                                 -             -
 Argentina MerVal                    35929.30         2.669
 Colombia IGBC                       13349.82          0.58
           Currencies                Latest      Daily %
 Brazil real                           3.9942          0.34
 Mexico peso                          19.1190          0.57
 Chile peso                                 -             -
 Colombia peso                         3318.5          1.76
 Peru sol                               3.344          0.00
 Argentina peso (interbank)           59.6500          0.05
 (Reporting by Susan Mathew and Sruthi Shankar in Bengaluru;
Editing by Rosalba O'Brien)