EMERGING MARKETS-LatAm markets up as trade war fears subside

BRASILIA, March 6 (Reuters) - Latin American markets rose on Tuesday as U.S. President Donald Trump's plan to slap tariffs on some imports faced lawmaker opposition, allaying concerns of a trade war. Trump's proposals triggered a widespread market sell-off last week as investors worried about retaliation from countries expected to be hit most by the planned tariffs. They included Canada, Brazil, South Korea, China and the European Union, with the EU also threatened with a tax on cars. But Trump faced growing pressure from political and diplomatic allies, as well as U.S. companies, to pull back from the proposal, driving a widespread recovery in global appetite for risk. "Trump doesn't have the support even of his own party, he is all by himself in defending protectionism," economists at SulAmérica Investimentos brokerage wrote in a report. All of Latin America's stock markets and currencies were up on Tuesday, with MSCI's index for equities in the region hitting a one-week high. Shares of steelmakers, such as Brazil's Usinas Siderúrgicas Nacionais SA, Cia Siderúrgica Nacional SA and Chile's CAP SA, were among the biggest gainers, rebounding from the recent selloff. Still, shares in Brazilian food processor BRF SA extended losses for a second day, after police unveiled an investigation on Monday over suspected fraud to evade food safety checks. Latin American currencies strengthened across the board, with the Brazilian real up 0.8 percent and the Mexican peso firming 0.5 percent. Appetite for emerging market currencies also got a boost from a historic agreement between North and South Korea on direct talks. North and South Korea, still technically at war but enjoying easing tension since the Winter Olympics in the South last month, will hold their first summit in more than a decade next month, South Korea said on Tuesday.

Key Latin American stock indexes and currencies at 1530 GMT:

Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1198.14 1.87 1.53 MSCI LatAm 3131.39 1.48 9.11 Brazil Bovespa 86424.80 0.47 13.12 Mexico IPC 48114.90 0.83 -2.51 Chile IPSA 5560.64 0.4 -0.07 Chile IGPA 27856.11 0.33 -0.45 Argentina MerVal 32672.49 1.68 8.67 Colombia IGBC 11414.79 0.25 0.39 Currencies daily % YTD %

change change Latest

Brazil real 3.2224 0.78 2.82 Mexico peso 18.7000 0.49 5.34 Chile peso 595.48 0.42 3.22 Colombia peso 2842.61 0.32 4.90 Peru sol 3.248 0.12 -0.34 Argentina peso (interbank) 20.1800 0.20 -7.83 Argentina peso (parallel) 20.25 0.15 -5.04

(Reporting by Bruno Federowski Editing by Nick Zieminski)