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EMERGING MARKETS-Mexico peso rebounds from low as NAFTA talks start

(Recasts with peso rebound) MEXICO CITY, Oct 11 (Reuters) - Mexico's peso rebounded on Wednesday from a near five-month low as talks began to rehash a trade deal with the United States, while other emerging market currencies also gained. Doubts that President Donald Trump would push through his planned tax reforms fueled bets that U.S. interest rates will rise more slowly than expected, lifting Latin American currencies across the board. The currencies of Brazil and Chile firmed sharply, while the Mexican peso gained nearly 0.7 percent. Mexico's peso shook off five straight sessions of losses on concerns that Mexico, the United States and Canada may fail to reach a deal to renegotiate the North American Free Trade Agreement. A fourth round of negotiating talks began in Washington on Wednesday. Trump said he would be open to bilateral trade deals with Canada and Mexico if NAFTA talks between the three countries fall apart. The peso shed more than three percent before its gains on Wednesday. Banco Base noted in a report that the currency could soon test 19 to the dollar if NAFTA talks continue to struggle. Key Latin American stock indexes and currencies at 2315 GMT:

Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1117.98 0.49 29.02 MSCI LatAm 2955.09 -0.35 26.69 Brazil Bovespa 76659.80 -0.31 27.28 Mexico IPC 50139.68 0.31 9.85 Chile IPSA 5465.65 -0.21 31.66 Chile IGPA 27359.63 -0.15 31.95 Argentina MerVal 26887.22 -0.78 58.93 Colombia IGBC 11050.63 -0.13 9.11 Venezuela IBC 532.07 0.18 -98.32 Currencies daily % YTD % change change

Latest

Brazil real 3.1696 0.45 2.53 Mexico peso 18.7100 0.67 10.87 Chile peso 625.05 0.63 7.30 Colombia peso 2954.1 0.10 1.60 Peru sol 3.259 0.15 4.76 Argentina peso (interbank) 17.4150 0.06 -8.84 Argentina peso (parallel) 17.8 0.34 -5.51

(Reporting by Michael O'Boyle, Editing by Rosalba O'Brien)