EMERGING MARKETS-Latam stocks rally as U.S.-China strike initial trade deal

 (Adds trade details, updates prices)
    By Susan Mathew
    Dec 13 (Reuters) - Latin American markets rose on Friday as
investors welcomed a  limited U.S.-China trade deal, and as U.S.
President Donald Trump said Washington would suspend tariffs on
Chinese imports scheduled to take effect on Sunday.
    China and the United States have agreed on the text of a
"phase one" trade deal, Beijing said on Friday, agreeing also to
step up purchases of U.S. agricultural products in a major step
forward in resolving a trade war that has hit global supply
chains and roiled markets for over 16 months.
    Mexican shares jumped 2.5% to a month high, and Chile
stocks rose to their highest since late November. An
index of Latam shares rose 0.8%. 
    Caution prevailed, however, as the deal is yet to be signed.
White House adviser Larry Kudlow warned that if China does not
comply with the trade deal, action will be taken, including the 
possible imposition of tariffs. 
    "Although it seems agreement has been reached about the
content of the deal, the legal text is still to be drafted,
which could create problems," wrote Timme Spakman, economist,
international trade analysis at ING, in a note.
    "This phase one deal does not include the most sensitive
topics, so considerable hurdles remain for a full deal that
resolves the trade war."
    Investors also bought risk assets after British Prime
Minister Boris Johnson's ruling Conservative Party won a solid
majority, boosting confidence London would accomplish an orderly
exit from the European Union.
    Brazil stocks edged up to scale new highs, driven by
consumer and commodity-linked stocks.
    Oil and gas heavyweight Petroleo Brasileiro SA
, however, fell after the Brazilian state development
bank said it was considering selling up to all of the ordinary
shares it holds in the state-run oil company via a secondary
    Regional assets were set to
gain for the week when support also stemmed from dovish
indications from the U.S. Federal Reserve. 
    Against a weaker dollar, Brazil's real fell 0.4%
after two days of gains, while Colombia's peso slipped
0.5% to break a seven session winning streak. 
    The Mexican peso rose marginally, having touched its
strongest against the dollar in more than four months on
positive news about the U.S.-Mexico-Canada Agreement trade deal.
    Key Latin American stock indexes and currencies at 1930 GMT:
    Stock indexes             Latest    Daily %
 MSCI Emerging Markets         1086.80       1.5
 MSCI LatAm                    2836.04      0.78
 Brazil Bovespa              112394.19      0.17
 Mexico IPC                   44290.43      2.54
 Chile IPSA                    4885.32      1.45
 Argentina MerVal             36921.08     3.989
 Colombia COLCAP               1628.30       0.6
       Currencies             Latest    Daily %
 Brazil real                    4.1067     -0.36
 Mexico peso                   19.0476      0.01
 Chile peso                      763.5      0.75
 Colombia peso                    3381     -0.35
 Peru sol                        3.366      0.27
 Argentina peso                59.8150      0.00
 (Reporting by Susan Mathew in Bengaluru; Editing by Richard