EMERGING MARKETS-Latam stocks, FX advance on hopes of easing US-China trade tensions

By Pranav Kashyap and Nikhil Sharma

April 24 (Reuters) - Most Latin American stocks and currencies rose on Thursday, lifted by elevated commodity prices and a weaker dollar, as investors assessed developments in the U.S.-China trade conflict.

MSCI's index for Latin American currencies .MILA00000CUS was up 0.2%. In contrast, the dollar index =USD was down 0.5%.

The MSCI index for Latin American stocks .MILA00000PUS rose 1.4% to a six-month high.

Beijing on Thursday said the U.S. must cancel all "unilateral tariff measures" against China "if it truly wanted" to solve the trade issue. This came a day after the White House indicated it was willing to slash sweeping tariffs on China.

President Donald Trump asserted on Thursday that trade talks between the U.S. and China were underway, saying "they had a meeting this morning".

"That risk aversion that we saw early this week has diminished a little bit in recent days, which is relatively good news for Latam," said Andres Abadia, chief Latam economist at Pantheon Macroeconomics.

Mexico's peso MXN= and Colombia's peso COP= rose 0.2% and 1.1%, respectively, tracking higher crude prices that stabilized a day after falling on a potential OPEC+ output increase.

The Mexican benchmark index .MXX climbed 1.1% as investors anticipated the Bank of Mexico would persist with its monetary easing, following data indicating inflation was within the 2% to 4% target range.

"We have seen economic activity slowing gradually in recent months... Banxico will be able to cut interest rates in the very near term," Pantheon Macroeconomics' Abadia said.

Latin American stocks and currencies have benefited of late from a weakening dollar as investors move away from U.S. assets amid the global trade uncertainties.

Minimal trade duties imposed by the U.S. on South American countries have also shielded them from sharp selling pressures.

Brazil's real BRL= gained 0.3%. The country's benchmark index .BVSP jumped 1.8% to a seven-month high.

Brazil central bank director Paulo Picchetti said policymakers have left the outcome of May's monetary policy meeting open and that there was little more they could say about future decisions in the current environment.

In Chile, the central bank is expected to hold rates at 5% when it meets next week. The peso CLP= was up 0.9%, tracking copper prices.

Chile's benchmark index .SPIPSA rose 0.8%. SQM's U.S.-listed shares SQM.N rose 2.8% after the country's competition regulator approved a deal between Codelco and the miner to form a joint venture to expand lithium production.

In Argentina, Deputy Central Bank Governor Vladimir Werning anticipated the peso currency would reach the lower end of its newly implemented trading band, after it was freed from longstanding controls designed to prevent its devaluation.

The peso ARS=RASL was last down 0.6%.

The International Monetary Fund's managing director, Kristalina Georgieva, encouraged Argentina to remain steadfast in its efforts to stabilize the economy by addressing double-digit inflation and significant deficits.

Key Latin American stock indexes and currencies: