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EMERGING MARKETS-Latam FX, stocks rise as dollar dogged by election jitters

    * Brazil's real reverses gains  
    * Markets pricing in a Biden win
    * Latam FX to benefit from Biden win- Reuters poll

 (Updates prices throughout, adds comments)
    By Ambar Warrick and Shreyashi Sanyal
    Nov 3 (Reuters) - Latin American currencies and equities
rose on Tuesday, recovering from recent falls as the dollar
weakened going into the U.S. presidential election, while
Brazil's real abandoned early gains to trade lower. 
    The day's gains in Latin America, and broader emerging
markets were underpinned by investors pricing in a Joe Biden
victory in the U.S. presidential election.
    "A Biden victory is more supportive for EM currencies in
general. The biggest risk to EM currencies is a contested
outcome from the election, to go a week or two without knowing
who the next president is will have a negative impact," said
Jeff Grills, head of emerging markets debt at Aegon Asset
Management.  
    Analysts believe a Biden win would pressure the dollar as he
is expected to spend big on stimulus and take a freer approach
to trade, which is likely to benefit other currencies.
    The real shed 0.3% after rising more than 1%
earlier in the session after a survey showed manufacturing
activity reached a record high in October. The real is the worst
performing emerging market currency so far this year.

   Aegon's Grills said Brazil's aggressive cutting of interest
rates has reduced the relative attractiveness of the real
against other historically high-yielding currencies. "The
question now is what will growth look like in 2021?" he said. 
    Brazilian stocks rose 1.4% after a long weekend.
Minutes from Brazil's latest central bank meeting struck a more
hawkish tone than its Oct. 27-28 policy statement which pointed
to low interest rates for a long time.
    Mexico's peso rose 0.6% after a rough start to the
week. Still, the currency, and Colombia's peso are
expected to stay under pressure from weakness in the oil market.
    Chile's peso jumped to a more than two-week high as
improving factory data around the globe boosted prices for
copper, the country's largest export.
    Argentina's wide gap between its official peso spot rate and
closely watched prices of the currency in alternative and black
markets has narrowed amid signals the central bank will tighten
its funding of government spending.
    Latin American stocks also rose on the day. The MSCI's index
of stocks added 1.5%.     
    A Reuters poll said Latin American currencies are poised to
edge up in the event of a Democrat win, but domestic challenges
will continue to hold them back.
    The coronavirus pandemic had exacerbated economic problems
in Latin America, raising concerns over the fiscal strength of
several major economies as economic output dropped and
governments took on more debt to cushion the pandemic's impact.
    
    
    Key Latin American stock indexes and currencies at 1939 GMT:
    
             Stock indexes                     Latest   Daily %
                                                        change
 MSCI Emerging Markets                         1119.41     0.42
 MSCI LatAm                                    1838.62     1.51
 Brazil Bovespa                               95220.24     1.35
 Mexico IPC                                   37466.86      1.3
 Chile IPSA                                    3520.49    -1.42
 Argentina MerVal                             47991.14    1.103
 Colombia COLCAP                               1154.84     1.59
                                                               
                Currencies                     Latest   Daily %
                                                        change
 Brazil real                                    5.7534    -0.28
 Mexico peso                                   21.2508     0.58
 Chile peso                                      757.8     1.28
 Colombia peso                                  3817.5     1.19
 Peru sol                                       3.5908     0.67
 Argentina peso (interbank)                    78.9200    -0.29
                                                        
 Argentina peso (parallel)                         161     4.35
 

 (Reporting by Ambar Warrick and Shreyashi Sanyal in Bengaluru;
editing by Emelia Sithole-Matarise; Editing by Andrea Ricci)
  
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