EMERGING MARKETS-Mexican peso leads Latam FX higher ahead of more tariff news

By Shashwat Chauhan

March 5 (Reuters) - Most Latin American currencies rose on Wednesday, with Mexico's peso regaining more of its tariff-driven losses ahead of another announcement by the Trump administration later in the day, while a weaker dollar also provided a lift.

The peso MXN= was last up 0.9% against the dollar, rebounding to the levels of late last week, while local stocks .MXX ticked up 0.2%.

Global markets were rocked on Tuesday after Trump's 25% tariffs on imports from Canada and Mexico took effect, along with a doubling of duties on Chinese goods to 20%.

Mexico's peso also saw heavy declines on Tuesday before retracing those losses late in the session after U.S. Commerce Secretary Howard Lutnick told Fox Business that President Donald Trump will reach a middle ground with Canada and Mexico on tariffs.

The Trump administration will make an announcement later in the day regarding the tariffs, Lutnick said in an interview on Bloomberg TV on Wednesday.

"We place a subjective 15-30% chance that the tariffs on Canada and Mexico are rescinded within the week, with higher odds they are addressed as part of the 'reset' on trade and tariffs that the U.S. Administration is targeting for April 1-2," TD Securities analysts said in a note.

Mexican President Claudia Sheinbaum said she is tentatively set to have a phone call with Trump on Thursday.

Worries of an escalating trade war have gripped markets, with Mexico set to lay down its retaliatory plans by Sunday, while Canada and China have already announced tit-for-tat tactics.

The peso CLP=, currency of the world's leading copper producer, advanced 0.8% to an over four-month high, while Peru's sol PEN= also gained 0.3% as copper prices jumped.

The metal was spurred as the biggest commodities consumer China set out an ambitious economic growth target, as well as by Germany's infrastructure fund plans and a weaker dollar.

Global markets will also track U.S. job data due on Friday as concern mounts over the economy's health, and traders increase their bets of greater monetary policy easing by the Federal Reserve this year.

MSCI's gauge for Latin American currencies .MILA00000CUS ticked 0.8% higher, while the stocks index ..MILA00000PUS added 1.1%.

Elsewhere in emerging markets, Ukraine's international bonds recovered from steep losses earlier this week after Trump said Ukraine was ready to negotiate over the war with Russia.

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Key Latin American stock indexes and currencies: