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EMERGING MARKETS-Latam FX broadly firms, Brazil's real recoups early losses

By Aaron Saldanha Feb 26 (Reuters) - Most Latin American currencies firmed on Tuesday against the dollar ahead of congressional testimony from U.S. Federal Reserve Chairman Jerome Powell, while Brazil's real recovered early losses on the day of the incoming central bank governor's senate confirmation hearing.

Powell is expected to underline the Fed's sensitivity to asset prices in testimony before the U.S. Senate Banking Committee. A dovish outlook from the Fed has boosted sentiment about emerging markets.

Investors are seeking more detailed clues now on coming changes in borrowing costs and the pace at which the Fed will shrink its balance sheet, Brazil-based brokerage H.Commcor said in a note.

Brazil's real erased losses on statements by incoming central bank chief Roberto Campos Neto, who said controlling inflation is necessary for long term growth and that the government should keep enacting reforms to stabilise public sector finances.

Sao Paulo-traded stocks rose 0.3 percent, aided by gains among energy stocks and financials.

Firmer oil prices supported state-run oil giant Petroleo Brasileiro SA (Petrobras), whose common shares and preferred shares each rose 1.1 percent.

The company's distribution unit, Petrobras Distribuidora SA , gained 2.4 percent on posting a jump in quarterly net profit.

Shares of planemaker Embraer SA flew 4.3 percent higher, with shareholders approving a deal to sell 80 percent of its commercial jet division to U.S. giant Boeing Co for $4.2 billion.

Chile's peso firmed 0.2 percent to what would be a 6-1/2-month closing high if gains hold.

The currency is seen as a correlation play in foreign exchange markets on prices of copper, Chile's top export. It has tacked on about 2.3 percent in the past week and a half on hopes of improving global trade, mirroring a rise in the metal's price.

Chilean stocks fell 0.3 percent, matching the decline their Argentinean peers saw in early trade.

Argentina peso was little changed, while Mexico's peso was 0.1 percent firmer.

Key Latin American stock indexes and currencies at 1430 GMT Stock indexes daily % Latest change MSCI Emerging Markets 1064.05 -0.34 MSCI LatAm 2889.56 -0.08 Brazil Bovespa 97554.16 0.32 Mexico IPC - - Chile IPSA 5464.74 -0.27 Argentina MerVal 36211.52 -0.33 Colombia IGBC - - Currencies daily % change Latest Brazil real 3.7486 -0.16 Mexico peso 19.1238 0.01 Chile peso 649.35 0.12 Colombia peso 3095.65 0.19 Peru sol 3.304 0.00 Argentina peso (interbank) 39.0100 0.10 (Reporting by Aaron Saldanha and Susan Mathew in Bengaluru and Lais Martins in Sao Paulo; Editing by David Gregorio)