ReutersReuters

Most Latam currencies, stocks climb as dollar slides after Powell speech

* Chile copper output up 2.2% in October

* Peru opposition launch 3rd impeachment attempt againstCastillo

* EM stocks set for best monthly performance since 2009

(Updates prices) By Bansari Mayur Kamdar and Devik Jain Nov 30 (Reuters) - Most Latin American currencies andstock indexes jumped on Wednesday as commodity prices rose anddollar slid after the Federal Reserve chair Jerome Powellsignaled slower pace of interest-rate hikes as early as nextmonth to battle inflation. The dollar index <=USD> dropped nearly 1%. The greenback hasrallied sharply this year partially due to it safe haven statusamid Russia-Ukraine conflict and prospects of aggressivemonetary policy tightening by the U.S. central bank. Powell said the Fed has been "pretty aggressive" alreadywith its rate hikes and won't try to crash the economy with further sharp increases just to get price rises undercontrol faster. Though he warned that the fight against inflation was far from over and key questions remain unanswered, including how highrates will ultimately need to rise and for how long. The MSCI's index for broader emerging market stocks EFS rose 2.3%, while currencies <.MIEM00000CUS> added0.8%. Latin American stocks (.MILA00000PUS) and currencies<.MILA00000CUS> jumped 2.9% and 1.3%, respectively. "The big take-away is (Fed Chair Powell) signaling (thenext interest rate hike) is going to be 50 basis points," saidChuck Carlson, chief executive officer at Horizon InvestmentServices in Hammond, Indiana. "The terminal rate is a moving target and taking yourfoot off the gas doesn't mean this is the last increase. Theyare willing to slow things down a bit... They are going to bedata dependent and see where the data leads." Latam stocks were down 0.3% in November compared to the14.9% jump in broader EM stocks index EFS that has put thelatter on track for their best month since May 2009. The real USDBRL gained 1.5% against the dollar on Wednesday,trimming most of its monthly losses suffered due to fiscalpolicy concerns surrounding President-elect Luiz Inacio Lula daSilva's economic plan. Economist Nelson Barbosa said on Wednesday Brazil's fiscal framework under Lulashould be able to absorb economic shocks. "Real had a good run for a while before November, tons ofvolatility ahead and after elections," said Juan Perez, directorof trading at Monex USA in Washington. "Now, overall it seems underlying prices of commodities andplanning for production are coming down in costs." Copper exporters Chile's peso <CLP=> and Peru's sol <PEN=>added 1% and 0.3% against the dollar. Copper output in Chile,the world's largest producer of the metal, rose 2.2%year-on-year to 485,447 tonnes in October, said the country'sstatistics agency INE. In Peru, political turmoil continues to weigh as oppositionlegislators launched third impeachment motion against PresidentPedro Castillo since he took office last year. Mexico's peso USDMXN slipped 0.2%. The Bank of Mexicoforecast that headline inflation likely peaked in the thirdquarter and was seen declining throughout the remainder of thisand next year, while also projecting stronger economic growthfor 2022 and 2023. Key Latin American stock indexes and currencies at 2027 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 974.61 2.27 EFS MSCI LatAm (.MILA00000PUS) 2246.60 2.89 Brazil Bovespa IBOV 111958.04 0.95 Mexico IPC ME 51197.18 2.04 Chile IPSA SP_IPSA 5282.61 0.72 Argentina MerVal IMV 169392.15 0.712 Colombia COLCAP <.COLCAP> 1245.77 -0.21 Currencies Latest Daily % change Brazil real <BRBY> 5.1875 0.22 Mexico peso USDMXN 19.2819 -0.34 Chile peso USDCLP 889.9 1.13 Colombia peso USDCOP 4825.82 -0.40 Peru sol <PEN=PE> 3.855 -0.16 Argentina peso (interbank) 167.2800 -0.19 <ARS=RASL> Argentina peso (parallel) 310 1.61 <ARSB=> <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Global markets' November rally https://tmsnrt.rs/3FeJCGM ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru,Stephen Culp in New York; Editing by Elaine Hardcastle and NickZieminski) ((BansariMayur.Kamdar@thomsonreuters.com; Twitter:@BansariKamdar;))

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