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EMERGING MARKETS-Mexican peso up on NAFTA talks, Trump investigation

SAO PAULO, Nov 17 (Reuters) - The Mexican peso firmed as much as 1 percent on Friday amid expectations that ongoing NAFTA talks in Mexico City would adopt a slightly more deliberative tone than in the past and focus on low-impact issues. The peso, which was trading at its strongest level against the dollar since mid-October, was also lifted by news that U.S. special counsel investigators into possible Russian interference in the 2016 U.S. election were seeking more documents from the Trump campaign. Late on Thursday, Reuters reported that Canada is open to reviewing the North American Free Trade Agreement every five years instead of terminating the deal automatically if it is not renegotiated as the United States has proposed. In a note to clients, Citibanamex said that the current round of NAFTA talks would focus on less controversial topics and Mexico was poised to present creative solutions, which would ease nervousness in the markets. Equities were mixed across the region, with Chile's blue-chip IPSA index up almost 1 percent, as the nation heads into an election weekend in which market-darling Sebastian Pinera is expected to deliver a strong performance. Santiago-listed shares in Latam Airlines Group SA, Latin America's largest carrier, jumped more than 2 percent after Deutsche Bank raised its target price on the stock. Chile's banking sector was also performing well, after Fitch said the country's largest banks were ready for Basel III liquidity rules. Brazil's Bovespa index also posted gains, helping by solid demand for materials such as iron, as well as WTI and Brent crude oil.

Key Latin American stock indexes and currencies at 1616 GMT.

Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1136,91 1,46 28,86 MSCI LatAm 2762,25 0,9 14,4 Brazil Bovespa 72913,02 2,73 21,06 Mexico S&P/BVM IPC 47696,90 -0,11 4,50 Chile IPSA 5363,14 1,26 29,19 Chile IGPA 27005,43 0,81 30,25 Argentina MerVal 27145,73 3,17 60,46 Colombia IGBC 10744,31 0,47 6,08 Venezuela IBC 673,73 1,98 -97,88 Currencies daily % YTD % change change

Latest

Brazil real 3,2712 1,15 -0,67 Mexico peso 19,0785 0,88 8,73 Chile peso 627,11 0,83 6,95 Colombia peso 3004,19 0,68 -0,09 Peru sol 3,246 0,31 5,18 Argentina peso (interbank) 17,4800 0,23 -9,18 Argentina peso (parallel) 18,01 0,28 -6,61

(Reporting by Gram Slattery; Editing by Meredith Mazzilli)