EMERGING MARKETS-Latam FX eases off gains; Mexico's peso, Brazil's real rise

    * Brazil GDP growth next year could top 4% - economy
    * Mexico's peso set to snap two-day losing streak 
    * Regional stocks fall as broader EM retreats

 (Adds details, updates prices)
    By Shriya Ramakrishnan and Ambar Warrick
    Nov 19 (Reuters) - Mexico's peso and Brazil's real led gains
across Latin America on Thursday amid hopes of a swift
post-pandemic recovery in the region's two largest economies,
while most other units eased as excitement over a vaccine cooled
with a surge in global infections.
    Mexico's peso strengthened 1.1% and was set to snap a
two-day losing streak, having benefited from the central bank
recently signalling a pause to a rate-cutting cycle.
    Democratic candidate Joe Biden's victory in the U.S.
presidential election also raised hopes for more stable trade
    Mexico earlier this week completed a debt refinancing
operation worth $6.6 billion in international markets, including
a heavily over-subscribed bond offer.
    The Brazilian real added 0.6% after the economy
minister said Latin America's largest economy could surprise on
the upside and grow more than 4% next year.    
    Brazil's central bank also said on Wednesday it will
intervene in the foreign exchange market to curb year-end
volatility caused by local banks unwinding their so-called
overhedge positions.
    "Although there are multiple factors pointing to a positive
outlook for Brazil in the short to medium term–including the
stronger-than-expected recovery and preparations for mass
vaccination, the fiscal outlook remains troubling," analysts at
TS Lombard wrote in a note, adding that progress in fiscal
reforms was a sticking point for the government's credibility. 
    The government had recently pledged to fast track reforms to
privatization and fiscal spending.
    Optimism about encouraging developments in vaccines for the
novel coronavirus provided an initial boost to Latam risk
assets, but like last week, the rally ran out of steam as 
infections continued to rise and more countries outlined
economically-damaging lockdowns.
    "(Vaccines)are unlikely to have much impact broadly until at
least Q2. We think the market is a bit too sanguine and
overlooking the near-term outlook, which looks to be more like a
hole in the road than a speed bump," Mazen Issa, senior FX
strategist at TD Securities wrote in a note.
    Chile's peso fell 0.1%, while Colombia's peso
shed 0.2%.
    Peru's sol was set to end a two-day winning streak as
political uncertainty still weighed.
    A gauge of Latin American stocks fell 0.4%
after hitting a more-than eight-month high, while broader
emerging market equities also retreated.
    Latin American stock indexes and currencies: 
                              Latest     Daily % change
 MSCI Emerging Markets         1200.85              -0.55
 MSCI LatAm                    2182.01              -0.36
 Brazil Bovespa              106225.15                0.1
 Mexico IPC                   41995.30              -0.61
 Chile IPSA                    4028.50              -1.95
 Argentina MerVal             51243.13             -0.102
 Colombia COLCAP               1234.03              -0.04 Currencies             Latest     Daily % change
 Brazil real                    5.3015               0.63
 Mexico peso                   20.1360               1.12
 Chile peso                      758.7              -0.11
 Colombia peso                 3647.95              -0.18
 Peru sol                       3.5757              -0.17
 Argentina peso                80.2700              -0.12

 (Reporting by Shriya Ramakrishnan and Ambar Warrick in
Bengaluru; editing by David Evans and Grant McCool)