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EMERGING MARKETS-LatAm markets seesaw ahead of Jackson Hole c.bank conference

SAO PAULO, Aug 21 (Reuters) - Latin American stocks and currencies seesawed on Monday as traders awaited the U.S. Federal Reserve's annual central banking symposium in Jackson Hole later this week for clues on the U.S. central bank's plans to raise interest rates. Questions over the possibility of a third U.S. rate hike this year have been a key driver of demand for emerging market currencies in recent weeks following a mixed batch of economic figures. Fed Chair Janet Yellen is expected to shed further light on the bank's plans to dial back the extraordinary stimulus policies it introduced to fight the 2009 financial crisis, such as unraveling the bonds it currently holds on its balance sheet. "A consensus among the Fed appears to have emerged to announce the reduction the balance sheet in September to be implemented beginning in the fourth quarter," analysts at Brown Brothers Harriman wrote in a note to clients. "We do not anticipate that Yellen will contradict this general view." Traders avoided making risky bets before her speech, focusing on more local factors such as moves in prices of commodities or political developments. The Chilean peso touched a six-month high as hopes of stronger Chinese demand lifted futures of copper, a key export, to the highest since 2014. Shares of Brazilian miner Vale SA followed iron ore prices higher, lifting the country's benchmark Bovespa stock index to a six-month peak. The Mexican peso firmed 0.2 percent after the United States, Canada and Mexico wrapped up their first round of talks revamp the NAFTA trade pact, vowing to keep up a blistering pace of negotiations. Traders are monitoring the trade talks closely as any U.S. measures to shield local industry from foreign competition would have a strong effect on Mexico. The three countries are trying to complete a full modernization of the 23-year-old North American Free Trade Agreement by early 2018, before Mexico's national election campaign starts.

Key Latin American stock indexes and currencies at 1720 GMT:

Stock indexes daily % YTD %

change change Latest

MSCI Emerging Markets 1063.59 0.38 22.88 MSCI LatAm 2827.99 1.09 19.52 Brazil Bovespa 68950.01 0.34 14.48 Mexico S&P/BVM IPC 51203.98 0.25 12.18 Chile IPSA 5101.25 -0.29 22.88 Chile IGPA 25495.67 -0.19 22.96 Argentina MerVal 22967.35 1.07 35.76 Colombia IGBC 10932.09 0.61 7.94 Venezuela IBC 197792.14 1.52 523.85 Currencies daily % YTD %

change change Latest

Brazil real 3.1501 -0.16 3.15 Mexico peso 17.6600 0.20 17.46 Chile peso 642.6 0.57 4.37 Colombia peso 2986.67 -0.03 0.50 Peru sol 3.239 0.09 5.40 Argentina peso (interbank) 17.2500 0.70 -7.97 Argentina peso (parallel) 18.25 0.55 -7.84

(Reporting by Bruno Federowski; Editing by Nick Zieminski)