(Updates prices; adds quote) By Agamoni Ghosh and Medha Singh Nov 7 (Reuters) - Latin American stocks rose on Thursday as signs of progress in U.S.-China trade relations boosted risk appetite, but Brazil's real fell, adding to its worst decline in three months, after the country held a disappointing second round of oil auctions. China said on Thursday it agreed with the United States to remove tariffs in phases, a pivotal first step in securing a deal and ending a trade stand-off between the world's two largest economies. MSCI's index of Latin American stocks rose for the first time in three sessions with all major stock indexes climbing higher, barring Colombian stocks, which fell marginally. Brazil's Bovespa was up more than 1% helped by trade optimism and a bout of positive earnings including Banco do Brasil which reported better-than-expected third-quarter results. Natura Cosmeticos jumped 7% after winning regulatory approval for the purchase of the North American company Avon. Brazil's real extended losses for a second day after another disappointing round of oil auctions with major global oil firms passing. The underwhelming response to the country's biggest-ever oil auction has frustrated investors' expectations as high prices and the dominant role of state-run oil company Petrobras scared off global oil majors. "While the disappointing oil auction suggests less supportive short-term flow dynamics, the medium-term narrative for Brazil remains constructive and BRL is one of our top EM picks," analysts from Morgan Stanley said in a note. Chile's peso fell 0.3%. Data showed the country's export revenue plunged by nearly one-fifth to $5.3 billion in October, in an early sign of a faltering economy amid the worst unrest since the South American nation's return to democracy in 1990. Colombia's and Mexico's peso strengthened between 0.2% and 0.6% as crude prices rose above $62 a barrel on hopes for a U.S.-China trade deal. The Peruvian sol was marginally lower ahead of a central bank rate decision at 2100 GMT, with expectations rife for a cut. Latin American stock indexes and currencies at 13:54 GMT Stock indexes daily % change Latest MSCI Emerging Markets 1075.33 0.6 MSCI LatAm 2803.08 0.59 Brazil Bovespa 109600.48 1.14 Mexico IPC 44176.71 0.82 Chile IPSA 4658.98 1.3 Argentina MerVal 35951.89 1.272 Colombia IGBC 13445.15 -0.29 Currencies daily % change Latest Brazil real 4.0870 -0.15 Mexico peso 19.1133 0.14 Chile peso 742.3 -0.18 Colombia peso 3316 0.58 Peru sol 3.343 -0.12 Argentina peso 59.6000 0.10 (interbank) (Reporting by Agamoni Ghosh and Medha Singh Editing by Leslie Adler)
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