(Recasts throughout; updates prices) By Aaron Saldanha and Stefani Inouye May 20 (Reuters) - A Latin American stocks benchmark rose on Monday, boosted by shares in index heavyweight Brazil, while Latin American currencies were pressured by the dollar, with risk appetite capped by fears of worsening U.S.-China trade ties.
Optimism regarding a proposal to reform Brazil's pension system boosted investor sentiment, while a U.S. crackdown on China's Huawei Technologies led to general weakness among a range of global markets.
MSCI's Latin American stocks index rose 0.6%, after hitting a 2019 low on Friday.
Brazil's congressional pension reform bill coordinator said his report on the proposed legislation will be ready by June 15, or perhaps earlier.
Sao Paulo-traded stocks tacked on 1.8%, aided by gains across most sectors, lifting off Friday's near five-month closing low.
Shares of state-run oil company Petroleo Brasileiro SA rose, with common shares gaining 1.5% and preferred shares rising 2.5%.
Gol Linhas Aereas Inteligentes SA's preferred shares rose 1.7%. U.S. hedge fund Elliott Management is opposing a new plan by Azul SA, Gol's rival, to buy some routes operated by financially troubled Avianca Brasil for $145 million, as per a legal document seen by Reuters.
Elliott is asking the court to dismiss Azul's proposal and keep its own plan intact which, if approved by a judge, would benefit Gol.
Brazil's real marked time, while yields on local 10-year bonds fell 8 basis points to 9.02%.
The currency's recent weakness has helped set the stage for rising momentum in Brazil's soybean trade, according to analysts, driven by a wave of Chinese demand.
Mexican stocks held an even keel, supported by a 3.5% gain in retailer Walmex. The peso firmed 0.4%.
Stocks in Argentina licked their wounds after Friday's 1.7% drop, trading 0.6% higher, while the peso softened.
Colombia's peso weakened, while stocks declined 0.8%.
Latin American stock indexes and currencies at 1921 GMT Stock indexes daily % Latest change MSCI Emerging Markets 993.74 -0.27 MSCI LatAm 2542.14 0.59 Brazil Bovespa 91607.15 1.79 Mexico IPC 43445.65 0 Chile IPSA 4926.10 0.01 Argentina MerVal 33501.05 0.56 Colombia IGBC 12137.26 -0.82 Currencies daily % change Latest Brazil real 4.1028 -0.07 Mexico peso 19.0800 0.44 Chile peso 696.1 -0.06 Colombia peso 3350.03 -0.90 Peru sol 3.347 -0.51 Argentina peso (interbank) 45.1900 -0.33 (Reporting by Aaron Saldanha in Bengaluru and Stefani Inouye in Sao Paulo Editing by Leslie Adler)