EMERGING MARKETS-Brazil's real, Colombian peso jump as Fed dents dollar

       * Peru's sol sits out EMFX rally, down 0.1%
    * Colombian peso jumps 1% as oil price rise
    * Ambev (ABEV), Vale weigh on Bovespa
    * Alsea, Cemex lift Mexico's benchmark index

 (Updates prices throughout, adds comments)
    By Susan Mathew and Shreyashi Sanyal
    July 29 (Reuters) - Most Latin American stocks and
currencies rallied on Thursday, with Brazil's real extending
gains for a fourth straight session against a dollar dented by
Federal Reserve Chair Jerome Powell's  continued dovish stance.
    Sentiment also got a lift from strong economic growth
numbers from the United States and attempts by China to calm
investor jitters spurred by regulatory actions there.

    As the dollar fell to its lowest level in one month
following the Fed's policy statement on Wednesday, MSCI's index
of Latam currencies rose 1.4%, set for its best
session in 12 weeks, while its stocks counterpart
 hit a two-week high, up 1.3%.
    Brazil's real hit two-week highs. Upbeat
economic data and expectations of tighter monetary policy have
lifted the currency of late, with the latest set showing Brazil
registered its strongest formal job growth in the first half of
the year since 2010.
    But political tensions and the COVID-19 crisis have capped
gains. The number of COVID-19 infections in Brazil is
approaching 20 million and the death toll is above 550,000.

    "In view of the further development of the pandemic, there
are unfortunately still considerable uncertainties, which I
believe (Brazil's central bank) cannot ignore," said Alexandra
Bechtel, an FX and EM analyst with Commerzbank. "In view of the
high interest rate expectations in the market, I therefore think
there is more potential for a setback for the BRL."
    The Peruvian sol fell 0.1% after socialist Pedro Castillo
assumed the presidency on Wednesday. He reassured investors
there was "not the remotest" plan to nationalize the mining
industry, but said he would seek "a new pact" with private
investors.
    Market experts await the make-up of his Cabinet to derive
projections for economic indicators. Markets in Peru were closed
for the independence day holiday.
    Investors in Peru, the world's second biggest copper
producer, have been fearful of changes to the mining industry as
Castillo plans to rewrite the constitution.
    "He stated that his administration will seek to accomplish
the constitutional change by modifying the current legislation,"
said Credit Suisse analyst Alberto J. Rojas. "Mr. Castillo will
find it difficult to accomplish his legislative objectives,
considering his lack of support in the legislature."
    Rising oil prices backed currencies of crude exporters, with
 Mexico's peso hitting two-week highs and Colombia's
currency jumping 1%.
    Among regional shares, Brazil's Bovespa lagged as brewer
Ambev (ABEV) and iron ore miner Vale dropped
after results.
    Mexico's IPC index rose as restaurant operator Alsea
 added more than 3% after it reported a surprise
profit, while cement producer Cemex SAB de CV rose
1.7% after reporting a profit for the second quarter compared
with a loss a year ago.

    Key Latin American stock indexes and currencies at 1848 GMT:

          Stock indexes                   Latest    Daily %
                                                    change
 MSCI Emerging Markets                     1296.25     2.21
 MSCI LatAm                                2607.77     1.31
 Brazil Bovespa                          125923.57    -0.29
 Mexico IPC                               51781.92     0.85
 Chile IPSA                                4247.28     1.76
 Argentina MerVal                         67330.44    1.167
 Colombia COLCAP                           1247.03     0.31

              Currencies                  Latest    Daily %
                                                    change
 Brazil real                                5.0770     0.64
 Mexico peso                               19.8604     0.23
 Chile peso                                  758.2     0.96
 Colombia peso                              3843.6     0.62
 Peru sol                                    3.925     0.00
 Argentina peso (interbank)                96.6400    -0.02

 Argentina peso (parallel)                     177     1.69



 (Reporting by Susan Mathew & Shreyashi Sanyal in Bengaluru;
Editing by Leslie Adler)

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