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EMERGING MARKETS-Chilean peso outperforms steady Latam FX after upbeat economic data

By Sruthi Shankar

* Chilean peso firms as much as 2% * Brazil manufacturing PMI rises in January * Buenos Aires races to seal 2021 bond deal * Mexican markets shut on Monday (Adds details, updates prices) By Sruthi Shankar Feb 3 (Reuters) - The Chilean peso led Latin American currencies higher on Monday as upbeat economic data from the world's top copper producer played into a positive global mood following a damaging week on concerns about the coronavirus outbreak. The peso firmed as much as 2% to 783.22 per dollar after central bank figures showed a 1.1% rise in Chile's economic activity in December, buoyed by a resilient mining sector. The peso touched historic lows last year after months of violent anti-government protests, but has bounced off those lows amid signs of a stabilizing economy. "The strong data somewhat undercut the central bank's dovish stance expressed at last week's meeting," Citi analysts wrote in a note. "The beat was more or less expected after strong IP (industrial production) and retail sales data on Friday," they added. Global sentiment brightened on Monday after China's central bank unexpectedly cut interest rates on reverse repurchase agreements by 10 basis points to relieve pressure on the economy from a rapidly spreading virus outbreak. Chinese stocks slumped 8% as investors returned from the Lunar New Year holidays, although the central bank's move supported risk sentiment in European and U.S. trading hours. After recording the worst weekly decline since mid-August, the MSCI's index for Latin American currencies rose 1.5% on Monday, with Brazil's Bovepsa gaining over 1%. Brazil's real bounced back from a record low in the previous session as data showed growth in manufacturing sector picked up in January. All eyes are on the central bank meeting on Wednesday, with majority of the economists forecasting a 25 basis point cut to the key Selic rate to support a still-sluggish recovery. In Argentina, Buenos Aires province has offered to make a $75 million capital payment on a 2021 bond, a last-gasp move to encourage holders of the debt to accept its proposal to delay a larger repayment and avoid the risk of falling into default. The Argentine peso eased slightly against the dollar. A market holiday in Mexico kept its peso little changed. Key Latin American stock indexes and currencies at 1951 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1061.13 -0.11 MSCI LatAm 2792.91 1.5 Brazil Bovespa 115143.92 1.22 Mexico IPC - - Chile IPSA 4579.45 0.16 Argentina MerVal 41396.56 3.22 Colombia COLCAP 1622.41 -0.09 Currencies Latest Daily % change Brazil real 4.2471 0.89 Mexico peso 18.8051 0.16 Chile peso 787.1 1.52 Colombia peso 3393.5 0.69 Peru sol 3.371 0.39 Argentina peso (interbank) 60.4650 -0.20 (Reporting by Sruthi Shankar and Shreyashi Sanyal in Bengaluru; Editing by Dan Grebler and Diane Craft)