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EMERGING MARKETS-Brazil stocks up on Petrobras boost

SAO PAULO, Aug 18 (Reuters) - Brazilian stocks on Friday rose near six-month highs after the government renewed tax breaks on the oil industry, boosting shares of state-controlled Petróleo Brasileiro SA. According to a statement published on the official gazette, Brazil will extend the so-called Repetro tax regime, which sets lower taxes for exports and imports of goods related to oil production and research in the sector. Analysts at XP Investimentos brokerage said that the oil industry would suffer greatly should those benefits not be extended as the tax breaks account for roughly 50 percent of investment. Preferred shares in Petrobras, as the oil giant is known, rose 3.6 percent, their biggest daily gain in a month. Common shares were up 2.6 percent. Shares in miner Vale SA added the most points to Brazil's benchmark Bovespa stock index, tracking an increase in China-listed iron ore futures. The Brazilian real strengthened 0.9 percent in a technical correction following a 1 percent slump the day before. Other Latin American currencies seesawed. Appetite for higher-risk emerging market assets has been hurt in recent days as doubts that President Donald Trump can deliver promised tax cuts and stimulus for the U.S. economy grew. But many emerging market assets were still headed for solid weekly gains. MSCI's emerging market index was on track to rise 1.5 percent on the week following strong gains early in the week as geopolitical tensions between the United States and North Korea eased.

Key Latin American stock indexes and currencies at 1720 GMT:

Stock indexes Latest Daily YTD pct pct

change change

MSCI Emerging Markets 1,061.64 -0.16 23.32 MSCI LatAm 2,818.45 1.08 19.13 Brazil Bovespa 68,807.53 1.22 14.25 Mexico S&P/BVM IPC 51,098.89 0.21 11.95 Chile IPSA 5,113.54 0.05 23.18 Chile IGPA 25,529.15 0.07 23.13 Argentina MerVal 23,076.54 1.55 36.40 Colombia IGBC 10,890.97 0.23 7.53 Venezuela IBC 194,487.58 3.15 513.42 Currencies Latest Daily YTD pct pct

change change

Brazil real 3.1491 0.91 3.18 Mexico peso 17.7145 0.71 17.10 Chile peso 645.52 0.14 3.90 Colombia peso 2,988.09 -0.07 0.45 Peru sol 3.241 0.00 5.34 Argentina peso (interbank) 17.3000 0.40 -8.24 Argentina peso (parallel) 18.25 0.55 -7.84

(Reporting by Bruno Federowski)