EMERGING MARKETS-Latam FX, stocks rise ahead of packed week of inflation readings

By Pranav Kashyap and Ragini Mathur

Feb 9 (Reuters) - Most Latin American currencies and stocks opened the week on a positive note on Monday, buoyed by rising commodity prices that lifted the resource-rich region's assets as investors prepared for a data-heavy week that could reshape rate expectations.

A benchmark index for Latin American currencies .MILA00000CUS climbed 0.7% to record highs, while a gauge tracking regional equities .MILA00000PUS rose 2.3%.

The Mexican peso MXN= strengthened 0.3% against the U.S. dollar following data showing inflation accelerated in January, validating the Bank of Mexico's decision last week to pause its rate-cutting cycle.

The data could provide additional momentum for the peso, which lagged broader emerging-market currency gains last year. Mexico's benchmark stock index .MXX jumped 0.9% to a record high.

"While we don't think this will prompt Banxico to end its easing cycle... it's clear that the easing cycle is in its final stage," said Kimberley Sperrfechter, emerging markets economist at Capital Economics.

Mexico's inflation print effectively opened the week's data deluge, with January inflation figures from Brazil and Argentina due Tuesday.

Those readings will be closely watched not just for what they say about price pressures, but for how they shape inflation expectations this year, and the region's carry appeal, a key ingredient behind Latin America's market outperformance last year.

Brazil's real BRL= rose 0.6%. The country's inflation data on Tuesday may draw extra scrutiny after the central bank chief emphasized calibration and a data-dependent approach, which signals policymakers want to move carefully even as they indicated easing could begin in March.

The benchmark index .BVSP was 1.9% higher. Separately, the country announced its first dollar bond sale in 2026.

In Argentina, the peso ARS=RASL gained 1.2%, while equities .MERV fell 0.2%.

COMMODITIES LIFT RESOURCE-HEAVY MARKETS

Precious metals, base metals and oil prices all advanced on Monday, providing a tailwind for Latin America's commodity-dependent economies.

"Gold and equities continue to correlate positively," said Bob Savage, BNY's head of markets macro strategy.

"The weekend's news on a continuation of Iranian talks with U.S. and hopes of a March Ukraine deal kept the geopolitical support for precious metals and energy in check."

Weakness in the U.S. dollar also helped commodity prices as markets braced for a heavy slate of U.S. data releases this week.

Chile's peso CLP= appreciated 0.6% to its highest level since September 2023, while stocks .SPIPSA. rose 0.4% as copper prices surged.

Colombia's peso COP= jumped 0.3%, with the country's benchmark stock index .COLCAP advancing 1.2%, helped by rising oil prices. Data on Friday showed the consumer price index rose 1.18% in January compared with December.

Latin American markets ended last week with modest gains following a turbulent stretch marked by sharp volatility in precious metals and a tech-led selloff that rattled global equities.

Key Latin American stock indexes and currencies: