SAO PAULO, Nov 6 (Reuters) - Latin American currencies on Monday rebounded from the previous week's selloff as rising prices of basic products drove investors to hunt for bargains. Currencies from Brazil, Mexico and Chile firmed between 0.3 and 0.9 percent after suffering hefty losses on Friday. Colombian markets were closed due to a local holiday. Upbeat data on U.S. services and manufacturing drove investors to sell high-yielding assets, betting that U.S. interest rates could rise faster than expected as the economy recovered. Still, concerns over U.S. President Donald Trump's ability to pass tax reform plans kicked back on Monday, dampening those expectations. "While tax cuts are not needed for healthy growth, they do matter," economists at Bank of America Merrill Lynch wrote in a report. "A large unfunded tax cut would likely create a boom-bust scenario, boosting near-term growth, but forcing a much faster Fed exit in an attempt to forestall inflation." A jump in commodity prices also helped to fuel demand for currencies from exporters of basic materials, such as oil-heavy Mexico. Crude prices hit their highest since July 2015 on Monday as Saudi Arabia's crown prince cemented his power over the weekend with an anti-corruption crackdown, while markets continued to tighten. Shares of Brazilian state-controlled oil company Petrobras also rose, while miner Vale SA and steelmakers Usinas Siderúrgicas de Minas Gerais SA and Cia Siderúrgica Nacional SA tracked iron ore prices higher. Brazil's benchmark Bovespa stock index rose 0.2 percent, with shares of insurance firm BB Seguridade Participações SA leading gains following strong quarterly results. Shares of planemaker Embraer SA, however, slipped 1.2 percent as investors booked profits on Friday's gains.
Key Latin American stock indexes and currencies at 1450 GMT:
Stock indexes daily % YTD % change change
MSCI Emerging Markets 1130.40 0.37 30.61 MSCI LatAm 2796.70 0.86 18.46 Brazil Bovespa 74060.23 0.2 22.97 Mexico S&P/BVM IPC 48409.77 -0.26 6.06 Chile IPSA 5521.45 0.65 33.00 Chile IGPA 27749.77 0.61 33.84 Argentina MerVal 27978.33 0.12 65.38 Venezuela IBC 709.37 -0.55 -97.76 Currencies daily % YTD % change change
Brazil real 3.2781 0.85 -0.88 Mexico peso 19.0595 0.80 8.84 Chile peso 632.3 0.32 6.07 Peru sol 3.238 0.15 5.44 Argentina peso (interbank) 17.6350 -0.54 -9.98 Argentina peso (parallel) 17.96 0.39 -6.35
(Reporting by Bruno Federowski)