EMERGING MARKETS-Brazil's real, Turkish lira rise after rate hikes; Russian rouble falls

    * Real jumps as hikes by 75 bps
    * Colombian peso reverses early declines  
    * Russian rouble resumes slide after Putin responds to Biden
    * Brazilian carrier Gol drops, cuts outlook

 (Adds comments, updates prices throughout)
    By Susan Mathew and Shreyashi Sanyal
    March 18 (Reuters) - The Brazilian real and Turkey's lira
outperformed broader emerging market peers on Thursday,
following interest rate hikes by their respective central banks,
while rising geopolitical tensions weighed on Russia's rouble.
    The lira extended gains to 2.6% against the greenback
after a hefty 200-basis-point (bps) hike, while Brazil's real
 was up 0.6%, trimming early gains of almost 2%,
after the central bank delivered a larger-than-expected 75-bps
raise after the market closed overnight.

    "The interest rate differentials for Turkey are outstanding,
the policy rate is now at 19% and since the lira has been
battered since mid-February, long lira bets could grow," said
Edward Moya, senior market analyst at OANDA.
    Delivering its first interest rate hike in nearly six years,
Brazil's rate-setting committee, Copom, raised the key rate to
2.75%, and flagged a similar move in May to fight inflation
despite rising economic uncertainty.    
    "We expect the move will prove effective in anchoring
inflation expectations and supporting the credibility of the
(Brazilian) Central Bank," said Samar Maziad, senior sovereign
analyst at Moody's.
    "However, in a context of a worsening pandemic and given the
slow pace of vaccination, higher interest rates add downside
risks to economic growth prospects for the rest of the year."
    The real is among the worst performing emerging market
currencies, with worries about fiscal spending, political
interference and rising inflation pushing it around 7% lower for
the year.  
    Russia's rouble traded 0.7% lower after Russian
President Vladimir Putin responded with a quip to U.S.
counterpart Joe Biden's warning of consequences for alleged
Russian involvement in the 2020 U.S. elections, saying he wished
the U.S. president good health.
    Washington is expected to impose new sanctions on Moscow as
soon as next week. The rouble had fallen 1% on Wednesday.
    Declining oil prices also weighed on the crude-exporting
nation's currency. 
    By afternoon trading, Colombia's peso rose 0.7%,
while Mexico's peso edged 0.2% lower after data showed
the country's economy contracted by 4.0% in February compared to
the same month a year earlier. 
    Brazilian stocks fell 1.5% as state-owned oil
producer Petroleo Brasileiro SA and consumer stocks
like Magazine Luiza SA and Vale SA.
    Brazil's largest airline Gol Linhas Aereas Inteligentes
 fell 6% after the company said it was cutting its
outlook for early 2021.
    Key Latin American stock indexes and currencies at 1924 GMT:
    Stock indexes             Latest    Daily %
 MSCI Emerging Markets         1345.01      0.16
 MSCI LatAm                    2317.51      0.31
 Brazil Bovespa              114759.40     -1.54
 Mexico IPC                   47735.42      0.12
 Chile IPSA                    4878.75     -0.62
 Argentina MerVal             49020.63    -1.795
 Colombia COLCAP               1320.69      -1.7
       Currencies             Latest    Daily %
 Brazil real                    5.5581      0.48
 Mexico peso                   20.4622     -0.36
 Chile peso                      719.4      0.40
 Colombia peso                  3545.1      0.68
 Peru sol                       3.7078     -0.13
 Argentina peso                91.2800     -0.08
 Argentina peso                    141      2.13

 (Reporting by Shreyashi Sanyal and Susan Mathew in Bengaluru;
editing by Jonathan Oatis, Alexandra Hudson)