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EMERGING MARKETS-Brazil stocks hit 3-month high as JBS jumps

SAO PAULO, Aug 8 (Reuters) - Brazilian stocks on Tuesday rose to a new three-month high, helped by shares of JBS SA after the head of development bank BNDES hinted that he would support a change in management of the world's largest meatpacker. In an event in São Paulo, BNDES head Paulo Rabello de Castro called JBS Chief Executive Officer Wesley Batista was a "player who scored goals" but that did not meant that "he would be picked by the coach for the next match." The Batista family, who controls JBS through holding company J&F Investimentos SA, has admitted to paying bribes to hundreds of politicians. The participation arms of BNDES, which holds a 21-percent stake in JBS, is among shareholders asking for his ouster from management. Common shares in JBS rose 6.5 percent on Tuesday, hitting the highest since June 1. It was the biggest gainer on Brazil's benchmark Bovespa stock index, which advanced 0.7 percent. Shares of for-profit college operator Estácio Participações SA rose 2.3 percent after Morgan Stanley Securities increase their price target on the stock to 26.90 reais from 24.50 reais. Moves in the Brazilian real, however, were muted, as traders awaited further moves on President Michel Temer's plans to streamline the social security system. Planning Minister Dyogo Oliveira on Monday said the government will seek to approve its proposed pension overhaul without further changes in Congress as it rushes to reduce a budget deficit. "Markets are more optimistic but there are lingering doubts over whether Temer has enough political capital to see it approved," Rico brokerage chief analyst Roberto Indech said. The Mexican peso strengthened 0.2 percent, rebounding from a one-month low in thin trading volumes. Investors avoided risky bets ahead of the beginning of negotiations of the North American Free Trade Agreement (NAFTA). Optimism has grown that the United States, Mexico and Canada will soon reach an agreement, dispelling fears of a trade war stoked by U.S. President Donald Trump's protectionist rhetoric. The Mexican peso has been among the world's best-performing currencies this year as those concerns waned. Key Latin American stock indexes and currencies at 1720 GMT:

Stock indexes Latest Daily YTD pct pct change

change

MSCI Emerging Markets 1,079.21 0.36 24.71 MSCI LatAm 2,817.69 0.7 19.54 Brazil Bovespa 68,387.22 0.66 13.55 Mexico S&P/BVM IPC 51,662.69 0.53 13.19 Chile IPSA 5,121.46 -0.38 23.37 Chile IGPA 25,531.16 -0.38 23.14 Argentina MerVal 21,449.21 -0.14 26.78 Colombia IGBC 10,887.13 -0.36 7.49 Venezuela IBC 196,759.16 0.69 520.59 Currencies Latest Daily YTD pct pct change

change

Brazil real 3.1262 -0.05 3.93 Mexico peso 17.8850 0.21 15.99 Chile peso 648 0.43 3.50 Colombia peso 2,993.93 -0.50 0.25 Peru sol 3.242 0.00 5.31 Argentina peso (interbank) 17.7225 -0.13 -10.42 Argentina peso (parallel) 18.27 -0.44 -7.94

(Reporting by Bruno Federowski; Editing by Nick Zieminski)