* Mexican, Colombian pesos among top gainers * MSCI Latam stock index set for best day since mid-May * Peruvian sol lags amid impeachment proceedings (Updates prices throughout, adds comments) By Ambar Warrick and Shreyashi Sanyal Nov 9 (Reuters) - Most Latin American stocks and currencies jumped on Monday as major progress in the development of a COVID-19 vaccine and optimism stemming from Joe Biden's win in the U.S. presidential election encouraged buying into risk-driven assets. Drugmakers Pfizer Inc and BioNTech SE said the experimental vaccine was more than 90% effective in preventing COVID-19 based on initial data from a large study, sparking a rally across global markets on hopes a vaccine would cement an economic recovery from the pandemic. Mexico's peso was among the biggest advancers among Latin American currencies, rising more than 1%. The country has been a high-profile sufferer of the Trump administration's hard line on trade in last four years. "A Biden win likely signifies a return to more predictable trade and foreign policy. We believe emerging market assets should perform on improved trade sentiment," Jean Boivin, head of the BlackRock Investment Institute, wrote in a client note. The U.S. dollar was subdued by the increased risk appetite, enabling strong gains across most emerging market currencies, with Colombia's peso adding about 2%. The Mexican and Colombian pesos were also supported by a near 8% surge in oil prices on news of the vaccine and Saudi Arabia's assurance that an OPEC+ oil output deal could be adjusted to balance the market. "Risky assets are off to the races amid very positive developments on a potential COVID vaccine, extending last week's election-related gains," Ned Rumpeltin, European head of FX strategy at TD Securities, wrote in a note. "We think it is very hard to argue that markets have not priced in a lot of good news over the last week or so. Whether all of it is now baked into the cake is perhaps the most relevant issue facing currency market investors right now." Biden's victory in the U.S. presidential race had seen markets starting the week on a high note, as investors bet on a stabler U.S. trade policy with China, Europe and Latin America. Brazil's real abandoned gains of over 2% early in the session to trade lower as investors digested the outcome of the U.S. vote. Analysts expect Biden to put Amazon deforestation and human rights at the top of his agenda with Brazil. The country's stocks jumped 2.6%, outperforming peers. MSCI's index of emerging market stocks jumped nearly 1.3% to its highest since March 2018. The Latin American stock index jumped 4% and was set for its best day in nearly six months. Peru's sol lagged its peers for the day, as President Martín Vizcarra faced an impeachment trial over corruption allegations, familiar terrain for the centrist leader who survived a previous vote to oust him in September and an attempt to suspend him in 2019. Argentina's major Buenos Aires province has extended an already-delayed deadline to Dec. 4 for bondholders to agree a deal to restructure some $7 billion in foreign debt. Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 1191.80 1.31 MSCI LatAm 2088.06 4.02 Brazil Bovespa 103551.74 2.6 Mexico IPC 39505.85 2.53 Chile IPSA 3928.48 3.05 Argentina MerVal 49740.63 2.574 Colombia COLCAP 1208.13 3.05 Currencies Latest Daily % change Brazil real 5.4031 -0.27 Mexico peso 20.3435 0.99 Chile peso 757.4 -0.69 Colombia peso 3647.08 2.02 Peru sol 3.5808 0.28 Argentina peso (interbank) 79.3400 -0.30 Argentina peso (parallel) 147 6.80 (Reporting by Ambar Warrick and Shreyashi Sanyal in Bengaluru; Editing by Krishna Chandra Eluri and Dan Grebler)
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