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EMERGING MARKETS-Brazil stocks rise, Mexico peso firm as NAFTA talks end for now

now@ (Updates prices) SAO PAULO, Nov 21 (Reuters) - Brazilian stocks rose on Tuesday, touching a three-week high amid rising investor hopes that lawmakers will approve a plan to streamline the social security system, while the Mexican peso strengthened to its highest level in a month. Concerns over Brazilian 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 Brazilian 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 garner more lawmakers' support, three sources told Reuters on Monday, further assuaging investor worries. "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 1.58 percent, with blue-chip shares such as lender Itaú Unibanco Holding SA and miner Vale SA posting gains. In Mexico, the peso strengthened 1.06 percent, as the fifth round of talks to repurpose the North American Free Trade Agreement (NAFTA) drew to a close with major differences yet to be resolved, casting doubt on whether a deal could be reached by the end of March 2018 as planned. The 1994 agreement underpins much of the more than $1 trillion in annual trilateral trade between the United States, Mexico and Canada, but Washington's repeated threats to walk away from the pact unless it is reworked in the United States' favor have spooked markets. Canada and Mexico object to a series of contentious demands the United States unveiled during the fourth round last month and the three countries made little progress in Mexico City. The peso traded at 18.7905 pesos per dollar on Tuesday afternoon.

Key Latin American stock indexes and currencies at 2107 GMT:

Stock indexes Latest Daily YTD pct pct change

change

MSCI Emerging Markets 1,152.53 1.45 31.76 MSCI LatAm 2,813.48 1.8 18.07 Brazil Bovespa 74,594.61 1.58 23.86 Mexico IPC 48,190.23 0.7 5.58 Chile IPSA 5,199.04 2.42 25.24 Chile IGPA 26,150.52 2.13 26.12 Argentina MerVal 27,266.05 0.51 61.17 Colombia IGBC 10,822.33 0.04 6.85 Venezuela IBC 699.28 -0.06 -97.79 Currencies Latest Daily YTD pct pct change

change

Brazil real 3.2580 -0.19 -0.27 Mexico peso 18.7905 1.06 10.40 Chile peso 634.15 0.51 5.76 Colombia peso 2,992.75 0.51 0.29 Peru sol 3.236 0.06 5.50 Argentina peso (interbank) 17.4700 0.09 -9.13 Argentina peso (parallel) 18.07 0.11 -6.92

(Reporting by Bruno Federowski and Gabriel Stargardter; editing