EMERGING MARKETS-Latam FX inches lower on commodity weakness, dollar recovery

* Embraer rises on South Korea aircraft order * Mexico Sep gross fixed investment falls 1.5% * Brazil's economy to have shrunk 0.2% in Q3 - Poll * Declining commodity prices pressure Latam FX * Latam stocks down 0.2%, FX off 0.1% By Johann M Cherian Dec 4 (Reuters) - Currencies in resources-rich Latin America kicked off the week on the back foot on Monday as commodity prices declined, while a recovery in the U.S. dollar from recent losses added further pressure. MSCI's gauge for Latin American currencies weakened 0.1% against the dollar by 1445 GMT. The greenback ticked higher, regaining some ground after falling for three straight weeks on bets that the Federal Reserve will soon be cutting interest rates. "November was a devastating month for the dollar, so naturally, what you're seeing now is investors digesting a lot of the commentary from what Jerome Powell said that they're going to keep interest rates higher for longer," said Juan Perez, director of trading at Monex. The region's biggest economy Brazil's real depreciated 0.7%. A poll showed the local economy likely shrunk 0.2% last quarter from the April-June period due to weak activity in the service industry after a surprisingly good performance in the first half of this year. The data is due on Tuesday. Also hurting the iron ore producer's currency was dwindling prices for the raw material. Argentina's main Merval index added 0.7%, while the local peso traded at 950 to the dollar in parallel trade. Separately, the country's incoming government aims to strike a trade agreement between the European Union and Latin American economies, the country's future Foreign Minister Diana Mondino said, as a deal under the current administration looks increasingly unlikely. Mexico's peso weakened 0.6%. Mexican gross fixed investment fell 1.5% in September from the previous month, the national statistics agency said. Oil exporter Colombia's peso dipped 0.5% as crude prices extended declines. Copper producer Chile's peso weakened 0.2%, as prices of the red metal dulled against a stronger greenback. Meanwhile, MSCI's equities index for the region slipped 0.2%. MSCI's indexes for stocks and currencies in South America ended the previous week in gains, extending November's rally where the equities gauge notched its best month since November 2020 on hopes that U.S. rates have peaked. Brazil's Bovespa fell 0.5%, overshadowing a 0.8% rise in Embraer after the airline announced that South Korea was the first customer of the C390 Millennium freighter in Asia, with the country purchasing an undisclosed number of aircraft. Itau Unibanco added 0.4% after the lender said it launched a cryptocurrency trading service for clients of its investment platform. Elsewhere in the region, Voters in Venezuela rejected the International Court of Justice's (ICJ) jurisdiction over the country's territorial dispute with Guyana and backed the creation of a new state in the potential oil-rich Esequibo region in a Sunday referendum. Key Latin American stock indexes and currencies at 1445 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 980.68 -0.15 MSCI LatAm 2486.04 -0.32 Brazil Bovespa 127591.15 -0.46 Mexico IPC 0.00 0.4 Chile IPSA 5862.25 -0.42 Argentina MerVal 876019.92 0.672 Colombia COLCAP 1152.27 0.04 Currencies Latest Daily % change Brazil real 4.9153 -0.74 Mexico peso 17.3013 -0.76 Chile peso 859.2 -0.50 Colombia peso 3987.38 -0.62 Peru sol 3.7384 -0.47 Argentina peso (interbank) 362.5000 -0.39 Argentina peso (parallel) 950 0.53 (Reporting by Johann M Cherian in Bengaluru; Editing by Alex Richardson)