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EMERGING MARKETS-Brazil equities bounce back with eyes on trade tensions

SAO PAULO, July 12 (Reuters) - Brazil's benchmark Bovespa index jumped over 1 percent on Thursday, bouncing back from a dip on Wednesday, as Latin America's largest equities market continued to seesaw on global trade tensions.

Latin American equities and currencies have proven sensitive to an ongoing U.S.-China trade spat, along with U.S. President Donald Trump's rhetoric toward other global powers. Local traders have tracked global markets, selling as tension mounts and buying back in as rhetoric cools.

On Wednesday, Brazil's Bovespa fell 0.62 percent as the United States announced tariffs on an additional $200 billion of Chinese imports.

Brazilian traders were heartened on Thursday, however, as Trump struck a more conciliatory tone with NATO allies after launching a public attack on German policy earlier in the week, according to Filipe Villegas, an equities analyst at Sao Paulo-based brokerage Genial Investimentos.

Villegas added that liquidity was lower due to a Brazilian holiday this week, as well as a relative dearth of domestic political news, contributing to volatility on the Bovespa in recent days.

The index had climbed 1.22 percent in morning trade.

The biggest gainers were steelmakers Usinas Siderurgicas de Minas Gerais SA and Companhia Siderurgica Nacional SA , which climbed 6 percent and 4 percent, respectively, after a global metals rout on Wednesday sent shares sliding.

Major currencies across the region were generally trading stronger against the dollar, recouping Wednesday losses, when traders fled emerging market currencies amid trade fears.

By far the biggest gainer was the Mexican peso, which climbed some 1.13 percent against the dollar, aided by U.S. data for June which showed inflation barely rising, possibly reducing the urgency for U.S. interest rate hikes.

Key Latin American stock indexes and currencies at 1425 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1069.52 0.45 -8.09 MSCI LatAm 2555.76 0.33 -9.93 Brazil Bovespa 75305.32 1.22 -1.44 Mexico IPC 48858.73 -0.34 -1.00 Chile IPSA 5285.54 -0.23 -5.01 Chile IGPA 26769.40 -0.19 -4.33 Argentina MerVal 27416.00 0.68 -8.81 Colombia IGBC 12275.59 -0.29 7.96 Venezuela IBC 101929.22 10.13 7969.51 Currencies daily % YTD % change change Latest Brazil real 3.8651 0.39 -14.28 Mexico peso 18.8845 1.09 4.31 Chile peso 648.4 0.66 -5.21 Colombia peso 2882.39 0.44 3.46 Peru sol 3.272 0.21 -1.07 Argentina peso 27.2000 0.74 -31.62 (interbank) Argentina peso 28.38 0.42 -32.24 (parallel) (Reporting by Gram Slattery and Paula Arend Laier; editing by Jonathan Oatis)