* Brazil's real, Colombian peso among top gainers * MSCI Latam stock index set for best day since mid-May * Peruvian sol lags amid impeachment proceedings By Ambar Warrick Nov 9 (Reuters) - Latin American stocks and currencies rallied on Monday as major progress in the development of a COVID-19 vaccine and optimism stemming from Joe Biden's win in the U.S. presidential election encouraged buying into risk-driven assets. Drugmakers Pfizer Inc and BioNTech SE said the experimental vaccine was more than 90% effective in preventing COVID-19 based on initial data from a large study, sparking a rally across global markets on hopes a vaccine would cement an economic recovery from the pandemic. Brazil's real was among the best performers in Latam, rising 2% to a three-week high, while the country's stocks outperformed their peers with a 3.5% jump. The U.S. dollar was subdued by the increased risk appetite, enabling strong gains across most emerging market currencies. Mexico's peso rose 1.8%, while Colombia's peso added about 2.5%. The two currencies were supported by a near 10% surge in oil prices on news of the vaccine and Saudi Arabia's assurance that an OPEC+ oil output deal could be adjusted to balance the market. "Risky assets are off to the races amid very positive developments on a potential COVID vaccine, extending last week's election-related gains," Ned Rumpeltin, European head of FX strategy at TD Securities, wrote in a note. "We think it is very hard to argue that markets have not priced in a lot of good news over the last week or so. Whether all of it is now baked into the cake is perhaps the most relevant issue facing currency market investors right now." Joe Biden's victory in the U.S. presidential race over the weekend had seen markets starting the week on a high note, as investors bet on a stabler U.S. trade policy with China, Europe and Latin America. The MSCI's index of emerging market stocks jumped nearly 2% to its highest since March 2018. The Latin American stock index jumped 5.6% and was set for its best day in nearly six months. U.S. stocks were also set for record-high opens. Peru's sol lagged its peers for the day, as President Martín Vizcarra faced an impeachment trial over corruption allegations, familiar terrain for the centrist leader who survived a previous vote to oust him in September and an attempt to suspend him in 2019. Elsewhere, Turkey's lira jumped more than 4% and was set for its best day since the aftermath of an economic crisis in 2018, after a major shakeup in its top economic policymakers. Key Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1199.11 1.93 MSCI LatAm 2117.83 5.5 Brazil Bovespa 104433.17 3.48 Mexico IPC - - Chile IPSA 3924.52 2.94 Argentina MerVal - - Colombia COLCAP 1172.34 - Currencies Latest Daily % change Brazil real 5.2589 2.47 Mexico peso 20.1870 1.77 Chile peso 753.7 -0.20 Colombia peso 3631.67 2.45 Peru sol 3.5907 0.00 Argentina peso 79.3000 -0.25 (interbank) (Reporting by Ambar Warrick in Bengaluru; Editing by Krishna Chandra Eluri)
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