(Rewrites throughout with updated prices, adds market strategist comment) April 1 (Reuters) - An index of Latin American stocks started the second quarter strongly on Monday, hitting its highest level in a week and a half, with resources stocks contributing significantly to the gains as unexpectedly strong Chinese data broadly pushed commodity prices higher. Currencies in Latin America also firmed against a tepid dollar as appetite for riskier assets rose. Data showed factory activity in China, a main destination for Latin America's resources, grew for the first time in four months in March. "Our bullish emerging markets call has received a shot in the arm from better data coming out of China," wrote Morgan Stanley strategists in a note to clients. "Most EM assets and FX should rally from here, but despite China being the reason for renewed economic optimism" assets and currencies in developing countries beyond Asia apart from Japan should be doing best, the note said. MSCI's index of Latin American stocks rose 1.3 percent, on the back of gains in index heavyweights Brazil and Mexico. MSCI's Latin American currencies index gained 0.8 percent. Brazil's real firmed 1.7 percent to a near one-week peak, while Sao Paulo-traded stocks tacked on 0.7 percent primarily on gains among materials and financials to end well above the 96,000-point mark. Mining firm Vale SA jumped 3.3 percent, as strong global iron ore prices helped overcome news the iron ore giant failed to obtain stability certificates for 13 dams under review following the rupture of another dam in January that killed hundreds. A more than 2 percent jump in oil prices as they hit 2019 highs failed to prop up state-run oil firm Petroleo Brasileiro SA (Petrobras), whose common shares and preferred shares fell 0.9 percent and 0.2 percent, respectively.

State-owned lender Caixa Econômica Federal has