EMERGING MARKETS-Latam FX cheers Brazil GDP; Colombian, Mexican pesos at 9-mth highs

By Ambar Warrick Dec 3 (Reuters) - Colombian and Mexican currencies hit a nine-month high on Thursday, tracking recent strength in oil markets, while most other Latin American currencies rallied on the back of encouraging economic readings from Brazil. Brazil's real jumped 1.3% to a four-month high after data showed the country's economy grew at a record pace in the third quarter due to a strong rebound across most sectors from coronavirus-induced lows. While the reading fell short of analyst expectations, it underscored a continuing economic recovery in Latin America's largest economy. A survey also showed that Brazil's services sector expanded in November for a third straight month but at a slower pace than the month before. Improving economic trends and optimism over the eventual rollout of a coronavirus vaccine have driven gains in Latin American assets through the past few months. Mexico's peso rose 0.3% and Colombia's peso added 1%, as the crude exporters looked to benefit from a recent spike in oil prices. Crude markets were awaiting further OPEC supply cuts, which are likely to further boost prices. Mexico's peso recently also benefited from the central bank standing pat on interest rates, while the prospect of calmer trade with the United States also drove capital inflows. "We see moderate MXN appreciation potential in 2021, as the external environment should be favorable for emerging market currencies due to the expansive monetary policies of the industrialized countries," analysts at Commerzbank wrote in a note. Colombia's peso extended gains into a third straight session after data earlier in the week showed the country's current account deficit shrank to 2.7% of gross domestic product in the third quarter. Chile's peso also rose, as it continued to benefit from strong copper prices. Regional stocks rose for the day, with the MSCI's index of Latin American equities touching a near nine-month high. Ultra-low lending rates across the world have made equities a reliable source of returns after the initial shock of the pandemic. Key Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1237.49 0.71 MSCI LatAm 2334.12 0.88 Brazil Bovespa 112381.07 0.45 Mexico IPC - - Chile IPSA 4145.03 -0.29 Argentina MerVal - - Colombia COLCAP 1288.49 - Currencies Latest Daily % change Brazil real 5.1742 1.29 Mexico peso 19.9077 0.26 Chile peso 751.4 0.57 Colombia peso 3483.91 1.04 Peru sol 3.5998 0.25 Argentina peso 81.5400 -0.06 (interbank) (Reporting by Ambar Warrick in Bengaluru; editing by Jonathan Oatis)