EMERGING MARKETS-Latam stocks jump over 2%, Brazil real leads currency gains

* Latam currencies up 0.8%, stocks rise 2.5% * U.S. dollar falls, boosting riskier currencies * Vale leads gains on Brazil's Bovespa as iron prices surge (Adds comments, updates prices throughout) By Bansari Mayur Kamdar May 23 (Reuters) - Latin American stocks rose over 2% on Monday as risk sentiment improved globally and firm metal prices boosted the commodity-heavy indexes, while currencies rose against a weaker dollar. The MSCI's index of Latam stocks climbed 2.5%, outperforming the broader emerging market index. "We still have a dynamic where some of the Latam countries could benefit more than their emerging market peers just because they are better placed in this commodity rally and some of the central banks are a little more ahead of the curve," said Rachel Ziemba, founder at Ziemba Insights. The U.S. dollar index fell 0.8%, supporting riskier currencies, while an improvement in sentiment around China as Shanghai started edging out of lockdown also reassured investors. The currencies index advanced 0.8%, led by a 1.2% jump in the Brazilian real,. Analysts see the Brazilian central bank's rate setting committee Copom raising interest rates to combat inflation and support its currency in its upcoming policy in June. Still, Rabobank's senior strategist, Mauricio Une says the U.S. Federal Reserve's hawkishness and Brazil's traditional electoral cycle will end up weighing on the real going forward. Meanwhile, miner Vale SA led Brazil's Bovespa index 1.8% higher, as iron ore prices surged after India raised export duties on some commodities to rein in inflationary pressures. Copper prices climbed to their highest in more than two weeks, buoyed by declining inventories and a weaker dollar, lifting currencies of producers Chile and Peru up 0.7% and 0.4%, respectively. The Mexican peso appreciated was flat in a market attentive to the upcoming monetary policy decisions by the Fed and the Bank of Mexico to combat inflation. Inflation data from Mexico due later this weak is forecast to have slowed in the first half of May, although still far above central bank targets, reinforcing expectations of continued interest rate hikes through the rest of the year. In Colombia, the candidates for the presidency closed their campaigns on Sunday with massive public events to gain the support of the voters for elections week. The Colombian peso was flat against the dollar. Elsewhere, the Russian rouble's onshore rate firmed 4.5% against the dollar supported by capital controls and an upcoming month-end tax period. Key Latin American stock indexes and currencies at 1859 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1034.73 -0.06 MSCI LatAm 2435.44 2.5 Brazil Bovespa 110497.77 1.85 Mexico IPC 51653.24 0.26 Chile IPSA 5128.35 2.92 Argentina MerVal 90302.48 2.478 Colombia COLCAP 1480.00 1.42 Currencies Latest Daily % change Brazil real 4.8053 1.36 Mexico peso 19.8950 -0.22 Chile peso 830 0.83 Colombia peso 3964.47 0.01 Peru sol 3.717 0.30 Argentina peso (interbank) 118.9400 -0.38 Argentina peso (parallel) 203.5 0.25 (Reporting by Bansari Mayur Kamdar and Shreyashi Sanyal in Bengaluru; Editing by Bernadette Baum and Nick Zieminski)