EMERGING MARKETS-Latam FX edge higher for fifth day; Peruvian sol jumps

* Board of Brazil's Petrobras approves Prates as next CEO * Peruvian sol hits near 1-year high * Chilean peso edges up ahead of rate decision * Latam currencies up 0.1%, stocks up 0.3% (Updates prices; adds comment) By Bansari Mayur Kamdar and Amruta Khandekar Jan 26 (Reuters) - Latin American currencies rose for a fifth straight session on Thursday, boosted by gains in the Peruvian sol while Chile's peso edged higher ahead of an interest rate decision by the country's central bank. The MSCI index for Latin American currencies rose 0.1%. The Peruvian sol jumped 1.6% against the greenback and was set for its biggest one-day percentage gain in nearly one year. "The spike in sol is temporary and that's only because some of the level of violence that we've seen in Peru has started to subside some. But there is a lot of instability," said Juan Perez, director of trading at Monex. The sol is down 1.2% so far in 2023, after violent protests after the ousting of former President Pedro Castillo last month shook the Andean nation. Chile's peso rose 0.1% ahead of the central bank's monetary policy decision, with the bank expected to keep the benchmark interest rate at 11.25%. The Brazilian real rose 0.3%. Brazil's outstanding public debt is expected to increase this year to between 6.4 trillion reais and 6.8 trillion reais, from last year's 5.951 trillion reais ($1.2 trillion), the Treasury said on Thursday. Latam stocks were up 0.3%, underperforming broader emerging market (EM) stocks, which rose 1.1% to hit an over seven-month high. Brazil's Bovespa index fell 0.1% as gains in the materials sector were offset by a 2.8% fall in state-run oil company Petrobras after its board of directors approved President Luiz Inacio Lula da Silva's pick, Jean Paul Prates, as the firm's next chief executive. Americanas SA rose 8.5%, extending sharp gains after the Brazilian retailer filed for Chapter 15 bankruptcy in the United States on Wednesday. On a positive note, foreign direct investment in Brazil almost doubled in 2022 from the year before to its highest level in 10 years, central bank data showed. Elsewhere in emerging markets, the South African rand slid 0.5% after the country's central bank raised its main lending rate by 25 basis points, smaller than the 50-basis-point increase expected by the majority of economists polled by Reuters. The Pakistani rupee fell 9.6% against the dollar, central bank data showed, its biggest one-day drop in over two decades - in a slump that may persuade the International Monetary Fund to resume lending to the country. While EM currencies have benefited from a rebound in risk appetite, most are still likely to depreciate in relation to the dollar this year, economists at Capital Economics wrote in a note. "After all, while the global economic outlook has improved, it remains weak outside of China – that informs our view that risk appetite will sour," said the economists. Key Latin American stock indexes and currencies at 1923 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1053.08 1.14 MSCI LatAm 2359.47 0.27 Brazil Bovespa 114098.22 -0.15 Mexico IPC 55001.52 0.24 Chile IPSA 5334.03 1.47 Argentina MerVal 261650.55 0.606 Colombia COLCAP 1303.42 0.16 Currencies Latest Daily % change Brazil real 5.0645 0.29 Mexico peso 18.8024 -0.15 Chile peso 802 0.11 Colombia peso 4525.2 0.01 Peru sol 3.8243 1.57 Argentina peso 185.3100 -0.15 (interbank) Argentina peso 381 0.52 (parallel) (Reporting by Bansari Mayur Kamdar and Amruta Khandekar in Bengaluru; Editing by Raissa Kasolowsky and Leslie Adler)