EMERGING MARKETS-Mexico peso hits 14-month high, Brazil real firms sharply

 (Updates prices)
    By Bruno Federowski
    SAO PAULO, July 18 (Reuters) - Mexico's peso hit a more than 14-month high
on Tuesday and Brazil's real firmed sharply after the collapse of a key U.S.
healthcare bill fostered doubts about President Donald Trump's economic plans
and broadly weighed on the dollar. 
    Trump's promises to cut taxes and boost spending has triggered expectations
of faster inflation that could force the Federal Reserve to raise interest rates
more than expected, potentially draining capital from emerging markets.
    Trader skepticism over Trump's pledges grew after a second attempt by U.S.
Senate Republicans to pass a healthcare reform bill failed, casting further
doubt over the Fed's plan to hike rates once more this year.
    Currencies from Brazil, Mexico, Chile and Colombia
 strengthened between 0.5 percent and 0.8 percent, extending gains last
week. 
    Mexico's peso traded at its strongest since early May 2016 while the
Brazilian real firmed to its best against the dollar since mid-May 2017.
    Wider emerging market stocks flirted with 27-month highs but Latin
American bourses mostly slipped as traders feared slower growth could translate
into lower U.S. imports from key trading partners in the region.
    Brazil's benchmark Bovespa stock index edged up 0.19 percent, helped
by gains in shares of wood pulp maker Suzano Papel e Celulose SA.
    
    Latin American stock indexes and currencies at 20:14 GMT:
 Stock indexes                     Latest        Daily   YTD pct
                                                   pct    change
                                                change  
 MSCI Emerging Markets               1,053.52    +0.19    +21.95
 MSCI LatAm                          2,737.28    +0.61    +16.24
 Brazil Bovespa                     65,337.67    +0.19     +8.49
 Mexico S&P/BVM IPC                 51,099.71    -0.45    +11.96
 Chile IPSA                          5,039.72    -0.14    +21.40
 Chile IGPA                         25,151.92    -0.08    +21.31
 Argentina MerVal                   21,053.48    -1.14    +24.45
 Colombia IGBC                      10,984.20    -0.61     +8.45
 Venezuela IBC                     130,240.12    -0.12   +310.78
                                                                
 Currencies                            Latest    Daily   YTD pct
                                                   pct    change
                                                change  
 Brazil real                           3.1547    +0.80     +3.00
 Mexico peso                           17.479    +0.64    +18.68
 Chile peso                           655.500    +0.63     +2.32
 Colombia peso                      3,016.000    +0.49     -0.48
 Peru sol                               3.243    +0.12     +5.27
 Argentina peso (interbank)            17.115    -1.08     -7.25
                                                        
 Argentina peso (parallel)             17.790    -0.39     -5.45
                                                        
    

 (Additonal reporting by Michael O'Boyle in Mexico City; Editing by Phil
Berlowitz)