EMERGING MARKETS-Latam FX finds support in weaker dollar, stocks set for monthly falls

By Shreyashi Sanyal Nov 30 (Reuters) - Most currencies in Latin America were trading higher on Tuesday after the dollar weakened, while stocks in the region were set for monthly falls by fresh doubts of how effective COVID-19 vaccines are against the Omicron variant. Mexico's peso led gains across the region, to rise 0.7% against a weakening greenback. The peso extended gains from the previous session, but slowing economic growth and rising inflation amid fears surrounding the spread of the coronavirus pushed the currency 4.2% lower for the month. Sliding commodity prices also did little to pressure Latin American currencies, with the Chilean peso gaining 0.3% despite falling copper prices and Colombia's peso adding 0.6% against tumbling oil prices. Chile's state copper commission Cochilco said that it slightly raised its predicted copper price for this year to $4.23 per pound, supported by a rally in the metal this year. Brazil's real struggled to keep up with its peers as it traded in a tight range. Brazilian central bank director Fabio Kanczuk said that the country's inflation now has less inertia, adding that the bank believes the outlook may change significantly in 2022. Stocks in Latin America came under pressure after warnings from U.S. drugmakers Moderna and Regeneron Pharmaceuticals that their COVID-19 vaccines and antibody cocktails could be less effective against the new coronavirus variant. "The emergence of a new, heavily mutated, COVID-19 variant has thrown markets into a tailspin. While the news flow around omicron will dominate market psychology in the very near-term, we think the bar to drive a truly nefarious outcome in risk markets and macro is very high," wrote Mazen Issa, senior FX strategist at TD Securities in a client note. The MSCI's index for Latin American equities is set for its third monthly declines in a row, set for falls of 2.5% in November. Brazilian stocks were 0.1% lower, while the Santiago stocks dropped 1.4%. Shares in Brazilian education holding company Anima Holding SA surged 17.5% after announcing a deal to sell a stake of its medical education subsidiary Inspirali to DNA Capital. Key Latin American stock indexes and currencies at 1447 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1216.49 -0.21 MSCI LatAm 2051.99 0.37 Brazil Bovespa 102690.08 -0.12 Mexico IPC 0.00 0 Chile IPSA 4443.29 -1.38 Argentina MerVal 78257.97 -1.058 Colombia COLCAP 1340.53 -0.51 Currencies Latest Daily % change Brazil real 5.5936 0.31 Mexico peso 21.3641 1.43 Chile peso 837.4 0.84 Colombia peso 4004.72 0.61 Peru sol 4.0545 -0.03 Argentina peso (interbank) 100.9300 0.01 Argentina peso (parallel) 198.5 1.26 (Reporting by Shreyashi Sanyal in Bengaluru Editing by Alistair Bell)