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EMERGING MARKETS-Brazil stocks dip from high, most Latam FX gains

(Rewrites with Brazilian stocks, adds fund manager comment) Oct 4 (Reuters) - Brazilian stocks slipped off a record high on Wednesday, but analysts saw room for the recent rally to continue as Latin America's largest economy emerges from its worst recession in a century. Brazil's benchmark Bovespa stock index dipped 0.22 percent as investors took some profits. The index had jumped the most since early January on Tuesday. "They're coming out of a very deep recession," said Sara Moreno, managing director global equity for Jennison Associates. "The market may be ahead of itself but it's not inconceivable that we're in higher recovery level to perhaps ... a very good growth rate," she said. Chief economist Alvaro Bandeira at Brazilian broker Modalmais said the long-term trend still pointed to more gains. Shares in state-controlled oil company Petroleo Brasileiro SA slipped 2 percent as investors booked profits from the previous day's rally. The stock rose sharply on Wednesday after a minister said a privatization of Petrobras, as the company is known, would be feasible in the long run.

Meanwhile, most Latin American currencies strengthened on Thursday on expectations that U.S. President Donald Trump will appoint a less hawkish head of the Federal Reserve than expected. Politico reported on Tuesday that Treasury Secretary Steven Mnuchin favors the appointment of Fed Governor Jerome Powell as Fed chair over former Governor Kevin Warsh, who is seen as more hawkish. The report fueled expectations that U.S. interest rates will rise slowly in coming months as inflation remains stubbornly below the U.S. central bank's 2 percent target Currencies from Brazil, Chile and Colombia firmed, supported by the prospect of stronger demand for high-yielding assets. Mexico's peso slipped ahead of upcoming talks later this month to revamp the North American Free Trade Agreement. Mexico's economy minister on Tuesday urged the parties to stop fixating on trade deficits between the countries. There are concerns that talks could stumble as sides turn to more contentious issues.

Latin American stock indexes and currencies at 19:29 GMT:

Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1,102.04 +0.46 +27.23 MSCI LatAm 2,995.40 +0.17 +27.75 Brazil Bovespa 76,548.63 -0.28 +27.10 Mexico S&P/BVM IPC 50,583.48 -0.06 +10.82 Chile IPSA 5,450.49 +0.56 +31.29 Chile IGPA 27,246.41 +0.59 +31.41 Argentina MerVal 26,398.03 -1.03 +56.04 Colombia IGBC 11,068.86 -0.50 +9.29 Venezuela IBC 539,055.06 +4.76 +1,600.2

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Currencies daily % YTD % change change

Latest

Brazil real 3.1307 +0.47 +3.79 Mexico peso 18.239 -0.13 +13.74 Chile peso 631.450 +0.11 +6.22 Colombia peso 2,934.300 +0.58 +2.29 Peru sol 3.259 +0.09 +4.76 Argentina peso (interbank) 17.355 +0.35 -8.53 Argentina peso (parallel) 17.770 +0.73 -5.35

(Reporting by Dion Rabouin; additional reporting by Bruno Federowski in Sao Paulo; editing by Grant McCool)