EMERGING MARKETS-Softer dollar, commodity price gains lift Latin American stocks, currencies

* Brazilian inflation picks up in mid-February * Brazil's BRF up after posting quarterly profit * Political tensions hit Argentinian bonds, stocks * Stocks up 0.8%, currencies 1.6% (Updated at 3 p.m. ET/2000 GMT) By Shashwat Chauhan and Lisa Pauline Mattackal Feb 27 (Reuters) - Most stocks and currencies in resource-rich Latin America advanced on Tuesday as commodity prices rose and the U.S. dollar was steady after weaker-than-expected durable goods data. MSCI's index for Latin American currencies was up 0.8%, with the region's major currencies up against the dollar. MSCI's index of regional stocks gained 1.6%. Both the stock and currencies indexes were set for their best session in three weeks. Iron ore exporter Brazil's real firmed 0.9% as prices of its top export rebounded, supported by hopes of demand recovery in top consumer China and a potential export tax on Indian low-grade iron ore. Data also showed Brazil's inflation picked up in mid-February, driven by higher education prices, but landed slightly below market expectations. "In our assessment, the inflation dynamics support the continuation of a gradual easing cycle, but the core-services inflation underlying dynamics merit attention," Goldman Sachs' Alberto Ramos wrote in a note. Oil prices gained after reports that producer group OPEC+ is considering extending voluntary oil output cuts into the second quarter. The news helped lift currencies of oil producers. Mexico's peso gained 0.2%, while the Colombian peso appreciated 0.7%. The dollar index was flat as investors digested U.S. economic data and looked ahead to key inflation figures later in the week. Top copper producer Chile's peso firmed 0.7% as prices of the red metal gained. Peru's sol reversed earlier losses, rising 0.3% against the dollar to 3.7919. Brazil's main stock index rose 1.5%, lifted by rising materials and utilities shares. However, Argentina's Merval fell over 4% to its lowest in over a month as mounting tensions between the government of President Javier Milei and some key provinces spread jitters about rising political risk. The country's over-the-counter sovereign debt fell by an average of 1.1%, while the 11EMJ country risk index rose to 1,727 basis points. Mexico's benchmark index was flat, while Chile's main stock index gained 1.8%. Shares of Brazilian mining giant Vale rose 2.5% and Colombian oil company Ecopetrol gained 0.2%. Brazil's Petrobras edged down 0.2%. Mexico's Pemex reversed losses in the last three months of 2023. However, its overall debt burden remained the highest of any oil company in the world. Brazilian food processor BRF SA jumped 8% after reporting strong fourth-quarter results HIGHLIGHTS ** Nigeria's central bank hikes interest rates ** Hungary's forint falls to lowest level in nearly five months after rate cut ** Timelines, predictability key issues for next sovereign debt roundtable -IMF's Georgieva ** Principal Asset Management upbeat on Latin America Key Latin American stock indexes and currencies at 2000 GMT: Latest Daily % change MSCI Emerging Markets 1027.53 0.33 MSCI LatAm 2573.99 1.58 Brazil Bovespa 131509.61 1.47 Mexico IPC 56155.58 -0.07 Chile IPSA 6322.20 1.83 Argentina MerVal 1032701.61 -4.419 Colombia COLCAP 1287.92 -0.27 Currencies Latest Daily % change Brazil real 4.9335 -0.03 Mexico peso 17.0558 0.23 Chile peso 980.9 0.73 Colombia peso 3929.75 0.65 Peru sol 3.7741 0.34 Argentina peso 841.1000 -0.05 (interbank) Argentina peso 1050 2.86 (parallel) (Reporting by Shashwat Chauhan and Lisa Mattackal in Bengaluru; Editing by Emelia Sithole-Matarise and Jonathan Oatis)