(Adds market details) By Agamoni Ghosh Jan 8 (Reuters) - Latin American stocks broadly rose on Tuesday, with Mexico's benchmark index hitting a near two-month high on news of expected tax cuts for companies taking the IPO route, as global equities gained on optimism over U.S.-China trade talks.
The dollar rebounded from Monday's near three-month low, mainly at the euro's expense, pressuring many emerging currencies, but a lift in oil prices helped currencies of net exporters in Latin America.
MSCI's index for Latin American stocks hovered around two-month highs, pushed up by a 1.6 percent rise in Mexico's IPC index after President Andres Manuel Lopez Obrador's leftist government said it would seek to boost initial public offerings by giving tax cuts to owners of companies that list.
Investors saw the move as a positive step after being shaken last year over worries about policymaking under the new administration, particularly the scrapping of an airport project that Lopez Obrador said was tainted by corruption.
In these first days of the new year, sentiment is more confident, said Gerardo Sienra, head of equity sales at Mexican brokerage Intercam. But he cautioned that on any given day the rules could change.
Brazil's Bovespa index closed above 92,000 points for the first time ever after hitting several record highs last week.
BRF (BRFS3.SA ) was the highest gainer on the index with traders citing the positive outlook for the U.S.-China trade talks, which could bring relief to commodity prices such as soybeans, benefiting the food maker.
Brazilian airline Gol Linhas Aereas Inteligentes was the top loser, with its preferred shares closing down 1.3 percent after it released preliminary fourth-quarter results.
Indexes in Colombia and Chile also rose, but Buenos Aires' Merval Index fell 0.3 percent, led by declines in bank shares.
Currencies in the region outperformed their emerging market peers with the Colombian peso leading gains after oil prices rose more than 2 percent on the trade talk optimism.
"The difference in the EM currencies today would be mainly because of the movement of oil with the Colombian peso emerging as one of the better performers," said Christian Lawrence, senior market strategist, LatAm FX, Rabobank.
Brazil's real and Chile's peso gained, but Argentina's peso fell 0.7 percent in response to a drop in the rate paid by the central bank in a bidding for Liquidity Letters "Leliq." Latin American stock indexes and currencies at 2200 GMT Stock indexes daily % Latest change MSCI Emerging Markets 975.51 -0.25 MSCI LatAm 2768.16 0.71 Brazil Bovespa 92031.86 0.36 Mexico IPC 43542.87 1.65 Chile IPSA 5224.28 0.66 Argentina MerVal 32914.88 -0.29 Colombia IGBC 11501.84 0.85 Currencies daily % change Latest Brazil real 3.7132 0.61 Mexico peso 19.3710 0.05 Chile peso 680 0.14 Colombia peso 3148.95 0.99 Peru sol 3.34 0.36 Argentina peso (interbank) 37.5400 -0.59 (Reporting by Agamoni Ghosh in Bengaluru; Additional reporting by Stefanie Eschenbacher and Michael O'Boyle in Mexico City; Editing by Leslie Adler)