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EMERGING MARKETS-LatAm currencies firm as risk appetite revives

SAO PAULO, Nov 16 (Reuters) - Latin American currencies strengthened on Thursday as investors cautiously returned to emerging markets following a selloff in the previous session. Stronger-than-expected U.S. retail and inflation figures on Wednesday fostered expectations that the Federal Reserve could increase U.S. interest rates faster than expected, driving traders away from higher-yielding assets. But that move faded on Thursday as bargain-hunting sparked a global rebound. European stocks rose after posting their longest losing streak of the year, while the dollar rebounded from a three-week low against a basket of developed market currencies. Latin American markets followed along, with currencies from Brazil, Chile and Colombia rising between 0.3 percent and 1 percent. The Mexican peso also firmed after concerns that the latest round of talks to overhaul the North American Free Trade Agreement (NAFTA) would fail to make much headway drove it to an eight-month low. Brazil's benchmark Bovespa stock index jumped 2.4 percent, also supported by a strong batch of corporate earnings figures. Shares of cosmetics maker Natura Cosméticos SA posted their biggest daily gain since 2008 after the company posted strong third-quarter operating profits.

Key Latin American stock indexes and currencies at 1720 GMT:

Stock Indexes Latest Daily YTD Pct Pct Change

Change

MSCI Emerging Markets 1,126.68 1.4 28.86 MSCI LatAm 2,742.06 2.4 14.4 Brazil Bovespa 72,521.39 2.39 20.41 Mexico S&P/BVM IPC 47,883.94 0.4 4.91 Chile IPSA 5,333.83 1.14 28.48 Chile IGPA 26,862.69 1.03 29.56 Argentina MerVal 26,953.98 2.44 59.32 Colombia IGBC 10,736.11 0.4 6.00 Venezuela IBC 666.03 0.81 -97.90 Currencies Latest Daily YTD Pct Pct Change

Change

Brazil real 3.2763 0.99 -0.83 Mexico peso 19.1500 0.51 8.32 Chile peso 630.06 0.36 6.45 Colombia peso 3,017.31 0.25 -0.52 Peru sol 3.252 0.12 4.98 Argentina peso (interbank) 17.4850 0.20 -9.21 Argentina peso (parallel) 18 0.33 -6.56

(Reporting by Bruno Federowski, editing by G Crosse)