EMERGING MARKETS-Mexico peso gains on hints of more rate hikes, Brazil stocks up
(Recasts with Mexican peso gains) MEXICO CITY, April 20 Mexico's peso gained on Thursday after the country's central bank chief hinted at further interest rate hikes and the country's finance minister said he saw room for further gains in the currency. The peso added more than 0.3 percent after Mexican Central Bank chief Agustin Carstens hinted that the bank's cycle of monetary tightening might not be over. The Banco de Mexico has increased its benchmark interest rate to a nearly 8-year high with a string of 50-basis point hikes, before introducing a smaller increase of 25 points at its last board meeting in late March. Higher interest rates have boosted the appeal of the peso, which has also gained ground as the administration of U.S. President Donald Trump has struck a more constructive tone on trade talks with Mexico. Finance Minister Jose Antonio Meade told Reuters that the peso is "quite competitive" and could strengthen further after a rally that has already made it the best performer this year among the world's most-traded currencies. Brazilian stocks gained on Thursday, supported by a rally in shares of miner Vale SA following solid first-quarter production figures. Vale's iron ore output fell 6.7 percent on a quarterly basis due to seasonal effects, but jumped 11.2 percent from a year ago to a record high for the period. The company's shares rose nearly 6 percent. Analysts at Itaú BBA maintained an "outperform" recommendation on the stock, citing prospects of a strong first-quarter operating profit. Steelmaker Usinas Siderúrgicas de Minas Gerais also rose after it reversed a loss in the first quarter amid early signs of a recovery in industrial output. Key Latin American stock indexes and currencies at 2050 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 958.45 0.58 11.15 MSCI LatAm 2,609.31 0.22 11.48 Brazil Bovespa 63,760.62 0.56 5.87 Mexico IPC 49,144.96 0.55 7.67 Chile IPSA 4,805.32 -0.67 15.75 Chile IGPA 24,133.41 -0.61 16.39 Argentina MerVal 20,668.71 0.75 22.17 Colombia IGBC 10,121.75 -0.01 -0.06 Venezuela IBC 47,695.30 0.28 50.43 Currencies Latest Daily YTD pct pct change change Brazil real 3.1565 -0.32 2.94 Mexico peso 18.7860 0.33 10.42 Chile peso 649.5 -0.15 3.26 Colombia peso 2,850 0.63 5.32 Peru sol 3.243 0.06 5.27 Argentina peso (interbank) 15.3825 0.11 3.20 Argentina peso (parallel) 16.04 0.37 4.86 (Reporting by Michael O'Boyle and Bruno Federowski in Sao Paulo; Editing by Dan Grebler)