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EMERGING MARKETS-Latam assets rise as dovish Fed revs risk-on rally

    * MSCI Latam stocks, currency indexes at 1-mth highs
    * Brazil stocks hit record high
    * Mexican peso subdued as industrial production dips

    By Ambar Warrick
    Dec 12 (Reuters) - Latin American assets firmed on Thursday,
with Brazil stocks at a record high as the prospect of an
accommodative U.S. Federal Reserve posited a risk-on sentiment
that was reflected across global markets.
    At its final meeting of 2019, the Fed held on rates and said
it was likely to do so in the near term. The rhetoric bought
down the U.S. dollar, and appeared to have distracted markets
from the uncertainty surrounding a Dec. 15 deadline for further
U.S. tariff action against China.
    Against this backdrop, global stocks rallied, with the
MSCI's broadest world share index just a few
points shy of a record high. Markets were also anticipating an
election in Britain that would likely determine the fate of its
proposed exit from the European Union.
    Brazil's benchmark stock index touched a record high
after the country's central bank cut interest rates to a record
low on Wednesday, as expected. Financials and material stocks
were the biggest boost to the index.
    The bank said it would likely pause on its current easing
cycle, which prompted the real to its highest level
against the dollar in more than one month.
    "The real should receive support as the door to rate cuts
slowly closes, it has already been benefiting from FX
intervention and better economic data," Dirk Willer, head of
emerging market strategy at Citi Research, and Kenneth Lam, an
emerging markets FX strategist, wrote in a note. 
    Data also showed Brazil's services activity expanded faster-
than-expected in October, indicating that certain facets of
Latin America's largest economy were recovering at a strong
pace.
    Chilean stocks hovered around three-week highs,
eyeing a fourth straight session of gains, while the peso
closed in on a one-month high to the dollar. Gains in the peso
were somewhat constrained by a dip in the prices of copper,
Chile's top export.
    Telecommunications provider Empresa Nacional de
Telecomunicaciones SA led gains on the Chilean stock
index.
    The Mexican peso was largely subdued, as industrial
output in the country fell 1.1% in October from the prior month,
and 3% from last year.
    The MSCI's Latin American stocks index and
currencies index both touched a more-than one
month high.
    
    Key Latin American stock indexes and currencies at 0203 GMT
    
    Stock indexes             Latest      Daily % change
 MSCI Emerging Markets         1068.29                0.95
                                        
 MSCI LatAm                    2789.12                0.37
                                        
 Brazil Bovespa              111469.22                0.46
                                        
 Mexico IPC                   43195.19                1.32
                                        
 Chile IPSA                    4793.09                0.17
                                        
 Argentina MerVal                    -                   -
                                        
 Colombia COLCAP               1605.32                   0 Currencies             Latest      Daily % change
 Brazil real                    4.1196               -0.02
                                        
 Mexico peso                   19.0971                0.09
                                        
 Chile peso                      769.2                0.09
                                        
 Colombia peso                 3375.02               -0.02
 Peru sol                        3.392                0.00
                                        
 Argentina peso                59.8150                0.01
 (interbank)                            
                                        
 

 (Reporting by Ambar Warrick in Bengaluru
Editing by Nick Zieminski)
  
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