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EMERGING MARKETS-Renewed trade hopes lift Latam stocks, Chile rate decision eyed

By Ambar Warrick and Susan Mathew

(Updates prices) * U.S. and China move closer to phase-one trade deal - Bloomberg * Brazil shares at record high * Fitch says technical recession likely in Chile * Argentine central bank chief tenders resignation By Ambar Warrick and Susan Mathew Dec 4 (Reuters) - Most Latin American stock markets staged a strong comeback on Wednesday, with Brazil shares scaling an all-time high, as U.S. President Donald Trump voiced more optimism than he did a day earlier about trade talks with China. After flagging a possible delay in reaching a deal with China on Tuesday, Trump earlier in the day said trade talks were going "very well." This followed a Bloomberg report that said both sides were closer to agreeing on the amount of tariffs that would be rolled back in a phase one trade deal. A basket of Latin American stocks jumped 1.3%, in line with a world-wide pick up in stocks. Brazil shares rose 1% with financials and energy stocks in the lead. MKTS/GLOB] Data showing Brazilian industrial production kept up its recovery in October came hot on the heels of strong third quarter economic growth numbers on Tuesday, brightening the picture for Latin America's largest economy. Data also showed overall business activity in Brazil remained unchanged in November from the prior month. The real currency firmed 0.1% against a slightly weaker dollar. Chile markets were among the strongest performers in the region, with stocks up 3.4%, while the currency gained 2%. All eyes are on a central bank meeting later in the day and while consensus expectations are for a cut, analysts say it could be a close call. "We've penciled in a cut, but are less confident about (a cut) than were a few days ago," said William Jackson, chief emerging markets economist at Capital Economics. "The pace of the fall in the peso over the past few days started to worry policymakers ... We saw the start of the quite large intervention program, which suggested they thought the currency may have overshot it, and they're trying to push back against that." Weeks of often violent protests in Chile over economic inequality had hammered its markets of late. Rating agency Fitch on Wednesday said the impact of protests may push the Chilean economy into a technical recession, expecting a contraction in the current quarter and the next. In Argentina, stocks spiked 5.5%, while peso closed down, before central bank chief Guido Sandleris presented his resignation, saying economic situation was, without a doubt worse, than expected. Oil exporters Mexico and Colombia's rose 0.6% and 1% respectively, tracking a surge in crude prices. Latin American stock indexes and currencies at 1939 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1037.38 -0.27 MSCI LatAm 2665.52 1.28 Brazil Bovespa 110070.89 1.02 Mexico IPC 42300.05 0.01 Chile IPSA 4644.98 3.38 Argentina MerVal 34576.71 5.556 Colombia COLCAP 1599.81 0.62 Currencies Latest Daily % change Brazil real 4.2021 0.07 Mexico peso 19.4370 0.57 Chile peso 787.8 2.09 Colombia peso 3467.5 0.94 Peru sol 3.379 0.30 Argentina peso 59.8800 0.07 (interbank) (Reporting by Susan Mathew in Bengaluru; editing by Grant McCool)