By Daniel Bases

NEW YORK, June 4 (Reuters) - Latin American stocks and
currencies gained ground on Thursday, spurred higher by U.S.
economic data that suggested an economic recovery was taking
hold and thereby lifted commodity prices.

Emerging markets rely on the export of commodities for a
big portion of their economic growth and signs of recovery in
the U.S. economy, a major destination for their goods and
services, increase investor appetite for these riskier assets.

One root cause for the rise on Thursday were reports
showing fewer U.S. workers filed for new claims for jobless
benefits and worker productivity grew more than expected in the
first quarter.

"Investors turned cautiously optimistic on Thursday,
modestly bidding up risky assets lifting both core equity and
commodity prices, which in turn provided some support to EM
assets," RBC Capital Markets said in a research note.

RBC added that the narrowing of the JP Morgan Emerging
Markets Bond Index Plus 11EMJ.JPMEMBIPLUS yield spread "was
overshadowed by another steep pop in U.S. Treasury yields."

The EMBI+ narrowed by 10 basis points to 433 basis points,
putting it at levels not seen since early October. This is
another sign that investors concerns are easing.

The move to equities left U.S. Treasuries lagging, sending
the benchmark 10-year yield up 16 basis points from late
Wednesday US10YT=RR.

MSCI's Latin American stock index .MILA00000PUS rose 2.14
percent, its best level since early October. The broad-based
MSCI emerging markets stock index .MSCIEF, however, lost
ground, undermined by losses in Asian and eastern European
bourses.

In the currency markets the Mexican peso gained 1.13
percent to 13.201 per U.S. dollar MEXO1MXN=.

Brazil's real climbed 1.08 percent to 1.9430 per U.S.
dollar (BRBY: Quote, Profile, Research).

The rise in commodity prices helped underpin emerging
markets.

Crude oil prices reached a 7-month high on economic
recovery hopes. U.S. crude for July delivery CLc1 rose $2.69
to settle at $68.81 a barrel after peaking at $69.60 earlier in
the day -- the highest level since early November.

Goldman Sachs raised its end of 2009 oil price forecast to
$85 a barrel from $65 and introduced a new end of 2010 forecast
of $95, the U.S. bank said in a research note.

Spot gold prices XAU= rose 1.88 percent or $18.05 an
ounce to bid $980.15.

Prices for grains also rose, giving a boost to exporters
such as Brazil and Argentina.
(Editing by Kenneth Barry)