(Updated at 14:30 EST)

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Brazil's government sees inflation within target band

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Chile's GDP up 0.7% in Q3 from previous quarter

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Latin American stocks up 0.75%, currencies up 0.93%

By Shashwat Chauhan, Pranav Kashyap

Nov 18 (Reuters) - Most Latin American currencies advanced on Monday, as the dollar's resurgence appeared to ease globally, while elevated prices of commodities such as iron ore and crude oil also helped gains in the region.

Brazil's real led the rises, up nearly 1% against the dollar following a local holiday on Friday, while Colombia's peso appreciated 0.57%, aided by elevated crude oil prices.

"There's potentially a bit of profit-taking going with the dollar today," said Fiona Cincotta, senior market analyst at City Index.

Over the weekend, Brazil's Finance Minister Fernando Haddad said in an interview with Times Brasil/CNBC that the Brazilian government's package of spending cuts is practically done and will be released soon, pending only a response from the defense ministry.

"The news about the fiscal package is supporting the real and is giving some investors confidence that the government will try and bring in some sort of fiscal consolidation that will help the currency in the medium-term," said Andres Abadia, Pantheon Macroeconomics' chief Latin America economist.

Brazil's finance ministry raised its inflation forecasts for this year but expects inflation to remain within the official target band, in contrast to a more negative view held by the markets.

Meanwhile, Brazilian development bank BNDES, on the sidelines of the

G20 summit

in Rio de Janeiro,

signed a deal

with the Asian Infrastructure Investment Bank for the investment of 16.7 billion reais ($2.89 billion) in the country.

Chile's peso gained 0.69% after data showed the Andean nation's gross domestic product grew 0.7% in the third quarter of 2024 from the previous three-month period, slightly surpassing market expectations of a 0.6% increase.

Colombia's economy grew slower than expected in the third quarter, data showed. It grew 2% compared to expectations of a 2.3% increase.

Most Latin American currencies had clocked weekly losses on Friday as the dollar remained resurgent globally on expectations the Federal Reserve would slow its pace of monetary easing.

Uncertainty over the impact of U.S. President-elect Donald Trump's policies on immigration, trade and tariffs has pressured Latin American assets, particularly the Mexican peso, which currently sits near its lowest level in more than a year against the dollar. It ticked up 0.4%.

Trump's plans for lower taxes and higher tariffs are expected to spur inflation and reduce the Fed's scope to further ease interest rates.

MSCI's index for Latin American currencies was up 0.93% after posting losses last week, while a gauge for stocks added 0.75%.

Stock exchanges in Colombia and Chile rose, while the main index in regional heavyweight Brazil was trading flat.

Equity markets in Mexico and Argentina were closed for a public holiday.

HIGHLIGHTS

** Argentina investors bet on Milei's popularity a year after his election

** Brazil's Lula opens G20 summit with call for action on poverty, climate

** Venezuela depreciation risks reversing years of inflation gains

Key Latin American stock indexes and currencies:

Equities Latest Daily % change

MSCI Emerging Markets 1090.71 0.53

MSCI LatAm 2091.82 0.75

Brazil Bovespa flat

127741.55

Mexico IPC - -

Chile IPSA 6542.59 0.24

Argentina Merval - -

Colombia COLCAP 1356.80 0.80

Currencies Latest Daily % change

Brazil real 5.74 0.9

Mexico peso 20.22 0.40

Chile peso 972.66 0.69

Colombia peso 4405.96 0.35

Peru sol 3.79 0.16

Argentina peso 998

(interbank) flat

Argentina peso (parallel) 1120 flat