* LatAm markets rally on signs of China economic recovery

* Copper prices touch 6-month highs on Chinese demand

* Peruvian, Brazilian stocks at 6-month highs

By Walter Brandimarte

NEW YORK, April 13 (Reuters) - Signs that the Chinese
economy is recovering faster than initially expected bolstered
Latin American markets as well as the prices of metals on
Monday, despite Wall Street's lackluster session.

Emerging markets have rallied during the past five weeks
on hopes that the global financial system is stabilizing and
that China's demand for raw materials will support growth
in commodity-exporting countries, especially in Latin
America.

The MSCI stock index for Latin America .MILA00000PUS
jumped 2.33 percent, extending to more than 38 percent the
gains recorded since the beginning of March, after Chinese
Premier Wen Jiabao said on Saturday the country's industrial
output grew more than forecast in March.

According to Wen, China's industrial output increased 8.3
percent in March, above the 6.0 percent expected by analysts,
from a record low of 3.8 percent in the first two months of
the year.

The data provided "further evidence that policy stimulus
is having an impact" in China, RBC Capital Markets' analysts
said in a research note.

The optimism about China directly affected the prices of
metals, especially copper HGK9, which jumped 2.6 percent to
a six-month high at the New York Mercantile Exchange to settle
at $2.1255 a pound, its highest closing level since Oct. 20.

Shares of miners rallied across the board, supporting a
5.78 percent jump in Peru's benchmark IGRA index , and
a 1.96 percent gain in Chile's blue-chip IPSA .IPSA.

Brazil's benchmark Bovespa index .BVSP rose 1.0 percent,
led higher by shares of mining company Vale (VALE5.SA: Quote, Profile, Research), while
Mexico's IPC index .MXX soared 6.37 percent, also supported
by expectations that upcoming earnings of key U.S. banks will
show the global financial sector is stabilizing.

Brazilian and Peruvian benchmark stock indexes were at
their highest level since October.

In the U.S. stock market, the Standard & Poor's 500 index
.SPX advanced slightly and the Nasdaq composinte index
.IXIC inched higher, while the Dow Jones industrial average
.DJI ended the session with a modest decline. U.S. markets
and some European markets were closed on Friday for Good
Friday as part of the long Easter weekend.

MEXICAN PESO RALLIES FURTHER

The Mexican peso MEX01MXN= led gains among Latin
American currencies, firming 2.03 percent to 13.1135 per U.S.
dollar at the central bank's final reference, its strongest
local close since December.

The recent good performance of the Mexican currency has
increased investors' bet that the central bank will deliver
another interest-rate cut of 75 basis points at the end of the
week.

The Colombian peso COP=RR gained 1.17 percent to
2,386.00 per dollar while the Peruvian sol PEN=PE
strengthened 0.81 percent to 3.085 per greenback, its
strongest level since November.

The Brazilian real (BRBY: Quote, Profile, Research) closed virtually unchanged at
2.170 reais per dollar, its strongest since November.

But yield spreads between emerging markets debt and U.S.
Treasuries, a key gauge of risk aversion, widened 7 basis
points to 566 basis points, according to the JPMorgan EMBI+
index 11EMJ.

Spreads had closed on Thursday at their tightest level
since mid-October.
(Editing by Jan Psachal)