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EMERGING MARKETS-LatAm stocks rebound as traders see bargains

SAO PAULO, June 20 (Reuters) - Most Latin American stock markets rose on Wednesday as traders took advantage of a brief respite in geopolitical worries to buy back into oversold equities.

U.S. stocks slid on Tuesday, with the Dow Jones Industrial Average erasing its year-to-date gains after President Donald Trump's latest tariff threats against Chinese goods. That helped drag down equities in Mexico, Chile, and Colombia.

On Wednesday, the same Latin American indices rebounded, with Mexico's IPC index climbing 0.51 percent, Chile's IPSA up 0.47 percent and Colombia's IGBC up 0.31 percent.

"Today, the risk aversion has decreased abroad," said one Sao Paulo-based trader.

Brazil's Bovespa, which had already posted a strong recovery on Monday, turned negative after early gains.

Among the biggest winners on the Bovespa was state-controlled oil company Petroleo Brasileiro SA, known as Petrobras, whose preferred and common shares rose 4.4 percent and 3.8 percent, respectively.

Oil prices were up on Wednesday, supported by reports of a drop in U.S. commercial crude inventories and the loss of storage capacity in Libya.

Shares in Lojas Renner SA, Brazil's largest apparel retailer, climbed 2.9 percent after analysts at Itaú BBA raised their rating on the company to "outperform," saying the company's ongoing expansion is on track.

Currency markets were mixed across Latin America, with the Mexican peso posting the biggest move, climbing 0.52 percent in morning trade.

"Investors seem to be brushing aside, at least for the moment, the uncertainty that the North American Free Trade Agreement and the Mexican presidential elections are generating," CI Banco wrote in a report.

Key Latin American stock indexes and currencies at 1425 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1092.16 0.66 -6.34 MSCI LatAm 2458.46 0.62 -13.61 Brazil Bovespa 71558.50 0.23 -6.34 Mexico IPC 46724.05 0.51 -5.33 Chile IPSA 5460.45 0.47 -1.87 Chile IGPA 27559.48 0.38 -1.51 Argentina MerVal 29118.51 5.29 -3.15 Colombia IGBC 12171.11 0.31 7.04 Venezuela IBC 65910.87 1.57 5118.02 Currencies daily % YTD % change change Latest Brazil real 3.7513 -0.20 -11.68 Mexico peso 20.4230 0.52 -3.55 Chile peso 638.71 0.18 -3.77 Colombia peso 2916.55 0.21 2.24 Peru sol 3.281 0.06 -1.34 Argentina peso 27.7500 -0.18 -32.97 (interbank) Argentina peso 28.25 -0.35 -31.93 (parallel) (Reporting by Gram Slattery and Flavia Bohone; Additional reporting by Miguel Angel Gutiérrez; Editing by Dan Grebler)