EMERGING MARKETS-Brazil real rises ahead of c.bank move, Latam peers also higher

       * Brazil's central bank seen hiking by 50 bps
    * Chile, Peru, Colombia FX rise on commodity boost
    * Brazil airlines rise as Bolsonaro vetoes free checked bags
    * Big Fed 75 bps rate hike eyed later in the day

    By Shreyashi Sanyal
    June 15 (Reuters) - Brazil's real rose on Wednesday as its
central bank approached what many expect to be the end of its
tightening cycle, while most other currencies in resource-rich
Latin America rose on higher commodity prices.
    The real shed 0.1%, fluctuating between a range
of 5 and 5.1 against the dollar ahead of an expected 50
basis points rate increase by the Brazilian Central Bank, which
could finalize its long tightening cycle.
    A Reuters poll said the central bank would leave the Selic
benchmark rate at 13.25%, one of the highest in the world. Even
as recent readings show an easing in price pressures in Brazil,
analysts say continued supply chain issues and high commodity
prices could allow the BCB to leave its door open for further
hikes.
    "If the BCB were to sound too dovish today, depreciation
pressure on the real is likely to rise. It will probably not
want to risk that," said You-Na Park-Heger, FX and emerging
markets analyst at Commerzbank.
    "Even in case of a hawkish BCB rate decision it is
questionable whether BRL would be able to benefit at all as the
action is elsewhere with the U.S. central bank's meeting being
held today."
    The U.S. Federal Reserve is expected to go big on hiking
interest rates. Markets are almost fully pricing in a 75 basis
point hike by the Fed, up from 8.2% a week ago, according to
CME's FedWatch Tool, boosting the dollar but pressuring broader
emerging market assets.
    However, Latin American markets attempted a recovery from
steep falls earlier in the week. The MSCI's index for equities
in the region shot up 1.4%, with heavyweight Sao
Paulo stocks leading gains.
    Brazil's Natura & Co Holding SA (NTCO) jumped 10% after
it said Chief Executive and Executive Chairman Roberto Marques
was stepping down in a shakeup, handing over the reins of the
cosmetics maker to board member Fabio Barbosa.
    Brazilian airlines Gol Linhas Aereas Inteligentes SA (GOL)
 and Azul SA rose over 5% each after
President Jair Bolsonaro vetoed a Congress-passed measure that
would block airlines from charging for checked baggage on
flights.
    Currencies of top copper producers, Chile and Peru
, edged higher as prices of the red metal bounced on
upbeat China factory.
    Colombia's peso gained over 1% on higher oil prices
and as its Finance Ministry on Tuesday revised upward its 2022
gross domestic product growth and inflation estimates.


    Key Latin American stock indexes and currencies at 1424 GMT:

            Stock indexes                    Latest   Daily %
                                                      change
 MSCI Emerging Markets                       1020.08     0.22
 MSCI LatAm                                  2162.90     1.19
 Brazil Bovespa                            103902.78      1.8
 Mexico IPC                                 48451.49      0.6
 Chile IPSA                                  5148.44     0.53
 Argentina MerVal                           88611.85    1.387
 Colombia COLCAP                             1496.12    -0.34

               Currencies                    Latest   Daily %
                                                      change
 Brazil real                                  5.1149     0.35
 Mexico peso                                 20.6605    -0.39
 Chile peso                                    867.4     0.07
 Colombia peso                                3921.6     0.97
 Peru sol                                     3.7521    -0.19
 Argentina peso (interbank)                 122.6800    -0.13

 Argentina peso (parallel)                       218     2.75


 (Reporting by Shreyashi Sanyal in Bengaluru; editing by Carmel
Crimmins)