EMERGING MARKETS-Brazil stocks hit 3-week high on pension reform hopes

SAO PAULO, Nov 21 (Reuters) - Brazilian stocks on Tuesday touched a three-week high on rising investor hopes that lawmakers will approve a plan to streamline the social security system and curb growth of public debt. Concerns over President Michel Temer's ability to pass the controversial measure had spooked local markets following a smaller-than-expected show of support for the center-right president in a recent vote. But efforts by Temer to appease lawmakers have rekindled expectations that the bill, seen as critical to boosting long-term growth, will be approved, even if the government needs to water it down to do so. Temer tapped an ally of House Speaker Rodrigo Maia as minister in a bid to gather more lawmaker support, three sources told Reuters on Monday, further assuaging investor angst. "Signs of common ground between Temer and Maia suggest some sort of political compromise and real chances that the pension reform is approved," analysts at Lerosa Investimentos brokerage wrote in a client note. The benchmark Bovespa stock index rose 1.8 percent, leading gains among regional markets. Blue chips such as lender Itaú Unibanco Holding SA, miner Vale SA and state-controlled oil company Petróleo Brasileiro SA added the most points to the index. The Brazilian real strengthened 0.1 percent, in line with gains on other Latin American currencies as rising prices of basic products fueled investor demand. Iron ore futures tracked a 3 percent jump in China-listed steel prices, supported by expectations that demand in the world's top consumer would bounce back when production curbs are lifted after winter. Crude prices also advanced due to bets on an extension next week to OPEC output cuts, though prices remained under pressure from signs of higher output in the United States.

Key Latin American stock indexes and currencies at 1530 GMT:

Stock indexes daily % YTD % change change


MSCI Emerging Markets 1152.18 1.42 31.76 MSCI LatAm 2808.19 1.61 18.07 Brazil Bovespa 74755.37 1.79 24.12 Mexico S&P/BVM IPC 47942.57 0.18 5.04 Chile IPSA 5175.19 1.95 24.66 Chile IGPA 26048.17 1.73 25.63 Argentina MerVal 27290.68 0.6 61.31 Colombia IGBC 10873.52 0.51 7.36 Venezuela IBC 699.85 0.02 -97.79 Currencies daily % YTD % change change


Brazil real 3.2572 0.10 -0.25 Mexico peso 18.8590 0.69 10.00 Chile peso 636.8 0.09 5.32 Colombia peso 2999.9 0.27 0.05 Peru sol 3.234 0.12 5.57 Argentina peso (interbank) 17.5075 -0.13 -9.32 Argentina peso (parallel) 18.04 0.28 -6.76

(Reporting by Bruno Federowski; Editing by Meredith Mazzilli)