*

Latam stocks up 1.2%, FX flat

*

Mexico's inflation at 4.55% YoY

*

Brazil economists see higher inflation despite rate hikes

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El Salvador nears $1.3 bln IMF deal, report says

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China to adopt appropriately loose policy

(Updates to afternoon trading)

By Pranav Kashyap and Johann M Cherian

Dec 9 (Reuters) - Most Latin American currencies began

the week on a cautious note ahead of a slew of economic data

from the region, while main equity indexes got a lift from

resources-heavy stocks on signs of policy support out of China.

Brazil's real was last flat in choppy trading on

Monday, as investors avoided big bets ahead of a central bank

interest rate decision, with markets tilting in favor of a 100

basis points interest rate hike.

A weekly poll showed that private economists have raised

their forecasts for the country's benchmark interest rate for

both this year and next, amidst rising inflation projections.

The focus is now on Brazil's IPCA inflation index figures

for November, with economists polled by Reuters expecting a

slowdown in consumer inflation to 0.37% on a monthly basis.

MSCI's index for Latin American currencies

was flat.

Mexico's peso edged up 0.1% at 20.17 to the dollar.

Data showing a greater-than-expected easing in the country's

12-month headline inflation rate in November, buttressing

expectations that the central bank will continue to reduce its

benchmark interest rate at its meeting next week.

"The fall in Mexico's headline inflation rate, combined with

the relative resilience in the peso since the U.S. election

means that Banxico is likely to press ahead with another 25 bps

cut," said Kimberley Sperrfechter, emerging markets economist at

Capital Economics.

Still, markets are bracing for what U.S. President-elect

Donald Trump's trade, security and immigration policies aimed at

the country might be. The peso and the local stocks index

is among top underperformers in the region. On the day the

bourse added 1.7% and touched a one-month high.

The Chilean peso firmed 0.7% as prices of top export

commodity, copper rose a touch a one-month high.

China's Politburo was quoted saying that it will adopt

an "appropriately loose" monetary policy next year, the first

easing of its stance in some 14 years, alongside a more

proactive fiscal policy to spur economic growth.

Further, the Chilean central bank reported that copper

exports reached $4.22 billion in November, contributing to a

trade surplus.

Fellow copper exporter Peru's sol was pinned at a

two-month high, while oil exporter Colombia's peso firmed

0.8% and hit a two-week high.

On the equities front, MSCI's index tracking local stocks

gained 1.2%, with Brazil's Bovespa up

1%, as miner Vale surged 5.6% and oil company

Petrobras added 2.8% tracking upbeat crude and base

metals prices.

Argentina's Merval index rose 1.3%, with oil company

YPF jumping 3.6%, while Chilean stocks

added 1% and hit a more than one-month high.

In Central America, El Salvador's dollar bonds maturing in

2030 and 2029 rose.

A report said the country expects to reach a $1.3 billion

loan agreement with the International Monetary Fund within two

to three weeks in return for adjustments to its use of bitcoin

as legal tender and reductions in government deficits.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

MSCI Emerging Markets 1114.59 0.86

MSCI LatAm 2023.29 1.22

Brazil Bovespa 127236.43 1.02

Mexico IPC 52203.05 1.66

Chile IPSA 6715.2 1

Argentina Merval 2231855.9 1.335

5

Colombia COLCAP 1380.76 0.27

Brazil real 6.0841 0.09

Mexico peso 20.1722 0.07

Chile peso 968.02 0.7

Colombia peso 4368.63 0.82

Peru sol 3.718 -0.05

Argentina peso (interbank) 1015.5

-0.25

Argentina peso (parallel) 1045 0.48