EMERGING MARKETS-Argentina stocks, peso rebound as IMF talks stir optimism

(Updates prices throughout; adds details from IMF talks, NAFTA) BUENOS AIRES, Sept 5 (Reuters) - Argentina's benchmark stock index jumped more than 4 percent on Wednesday and the peso currency appreciated after the government raised the prospect of a new deal with the International Monetary Fund (IMF) after two days of talks in Washington. The peso closed 1.38 percent stronger at 38.52 per dollar on Wednesday, marking a rare pause in losses that have shaved more than 50 percent off its value this year, making it one of the worst performing emerging market currencies. Argentine Economy Minister Nicolas Dujovne said he believed a deal to release early disbursements from a $50 billion standby loan agreement with the IMF could be put to its board by the end of the month, helping to shore up investor confidence.

The Merval stock index closed up by 4.14 percent after tumbling earlier in the week. Mexico's peso rose 0.32 percent as talks between the United States and Canada aimed at reaching a three-way deal in the renegotiation of the North American Free Trade Agreement entered their latest phase in Washington. In Brazil, the real currency and benchmark Bovespa stock index strengthened slightly. Political uncertainty in Brazil took a toll after judicial authorities canceled the release of a closely-watched opinion poll on technical grounds, while prosecutors accused market-friendly presidential candidate Geraldo Alckmin of accepting improper donations. Still, the index was supported by opportunistic buying after some heavily weighted firms, such as beverage company Ambev SA , fell significantly in previous sessions. A big winner on the Bovespa was Suzano Papel e Celulose SA , which climbed nearly 4 percent after Brazil's securities regulator rejected a request by shareholders to delay a shareholders' meeting in which a tie-up with rival Fibria Celulose SA will be discussed.

Key Latin American stock indexes and currencies at 2300 GMT:

Stock indexes Latest Daily YTD pct pct change

change

MSCI Emerging Markets 1,040.17 -0.66 -10.21 MSCI LatAm 2,387.97 -2.3 -15.56 Brazil Bovespa 75,092.27 0.51 -1.71 Mexico IPC 48,595.37 -0.59 -1.54 Argentina MerVal 28,769.09 4.14 -4.31 Colombia IGBC 12,111.59 -0.86 6.52 Chile IPSA 5,137.49 -0.69 -7.675 Currencies Latest Daily YTD pct pct change

change

Brazil real 4.1436 0.23 -20.04 Mexico peso 19.3375 0.32 1.87 Chile peso 687.8 0.71 -10.64 Colombia peso 3,097 -0.08 -3.71 Peru sol 3.318 0.06 -2.44 Argentina peso (interbank) 38.40 1.38 -51.56

(Reporting by Gram Slattery and Jorge Otaola; Additional reporting by Hugh Bronstein; editing by Jonathan Oatis and Rosalba O'Brien)