EMERGING MARKETS-Latam FX up, Brazil real gains as industrial confidence rises

* Brazil industrial confidence hits highest since 2011 * Global risk appetite boosted by U.S. stimulus hopes * Mexican shares boosted by America Movil's Q3 profit rise * Argentina unofficial peso rates hit new record lows - traders (Updates prices throughout, adds comments) By Shreyashi Sanyal Oct 21 (Reuters) - Major currencies in Latin America firmed on Wednesday as the dollar extended its declines on rising hopes for a large U.S. coronavirus relief package, while Brazil's real gained as industrial confidence hit its highest in over nine years. Global risk assets saw a boost in demand after U.S. President Donald Trump and House of Representatives Speaker Nancy Pelosi boosted hopes for a large fiscal stimulus package. The dollar hit its lowest level in seven weeks, as it helped support a rise in emerging market currencies. "Risk appetite continues to find its feet as investors cling to hopes the U.S. government can reach a deal on fiscal stimulus ahead of the 3 November election," said Ned Rumpeltin, European head of FX strategy for TD Securities. "The dollar is showing a more confident 'risk on' attitude with declines against the G10 and all but a handful of major EM currencies." Brazil's real rose 0.2% as a survey showed industrial confidence in October jumped to its highest since 2011, as the sector continues to rebound strongly from a coronavirus lockdown and lead the wider economic recovery. The real started the week on firmer footing after Economy Minister Paulo Guedes reassured investors that a new fiscal program will not overshoot the government's spending cap, a package which has recently raised worries about Brazil's public finances. In Mexico, data showed the country's unemployment rate fell to 5.1% in September from 5.2% in August as its economy gradually recovers from the fallout of the pandemic. Mexico's peso was flat. Chile's peso gained 0.4%, while the Colombian peso rose 1.6%. Argentina's unofficial peso rates weakened to new record lows, traders said, despite recent government measures to bolster liquidity in the foreign exchange markets. Economists at Capital Economics expect Latin America to likely suffer the damaging effects of COVID-19 for longer than most other parts of the world. "The Long-term Outlook – even once the effects of the crisis fade, (Latin America's) longer-term prospects are worse than in most other EM regions." The MSCI's index for Latin American stocks firmed 0.3%, with Santiago shares gaining 3%. Chilean miner Antofagasta reported a drop in copper output during the third quarter, but maintained its guidance for the year. Mexican shares rose 1.2%, lifted by a nearly 3% jump in telecommunications giant America Movil as it said on Tuesday its net profit jumped nearly 45% in the third quarter, boosted by relaxed coronavirus lockdown measures across its key markets. Key Latin American stock indexes and currencies at 2010 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1137.27 0.29 MSCI LatAm 1954.74 0.28 Brazil Bovespa 100637.67 0.1 Mexico IPC 38657.11 1.19 Chile IPSA 3782.66 2.99 Argentina MerVal 50139.12 0.916 Colombia COLCAP 1177.92 -0.8 Currencies Latest Daily % change Brazil real 5.6034 0.21 Mexico peso 21.1040 0.08 Chile peso 782.3 0.43 Colombia peso 3764.5 1.55 Peru sol 3.5967 0.06 Argentina peso (interbank) 77.7300 -0.06 Argentina peso (parallel) 179 0.56 (Reporting by Shreyashi Sanyal in Bengaluru; editing by Jonathan Oatis and Alistair Bell)