EMERGING MARKETS-Latam markets rise ahead of Fed; Copom rate verdict on tap

* Brazil's industrial output rises 0.1% in September * Copom rate decision awaited at 2100 GMT * U.S. Fed monetary policy verdict due at 1800 GMT * Latam stocks add 1.8%, FX up 0.7% By Johann M Cherian Nov 1 (Reuters) - Most Latin American currencies and stocks were up on Wednesday ahead of a Brazilian central bank rate decision later in the day, while investors also awaited a U.S. monetary policy verdict out of the world's largest economy. MSCI's index tracking Latam stocks rose 1.8%, while a basket of regional currencies strengthened 0.7% against the dollar by 1439 GMT. Brazil's real climbed 0.5% ahead of a central bank monetary policy decision, where economists widely expect the regulator to slash the Selic interest rate by 50 basis points to 12.25%. The decision is due at 2100 GMT. "At 12.75% (currently), the policy rate is on a highly contractionary stance, excessively so now that inflation expectations are at 4%," Felipe Camargo, senior emerging markets economist at Oxford Economics, said. "It is market consensus that rates will reach 11.75% by year-end." Also aiding sentiment during the session, domestic industrial production in September saw its second positive month in a row but it continued to grow at low levels amid high interest rates pressure. Focus will now shift to the U.S. Fed which is widely expected to keep interest rates unchanged. Investors will be keen on Chair Jerome Powell's conference at 1430 ET (1830 GMT) after the statement to gauge how long the central bank could keep rates elevated. South American currencies and stocks had a disappointing end to October, pressured by rising U.S. Treasury yields on expectations of U.S. credit conditions staying restrictive for a while. However, amid hopes of the U.S. tightening cycle nearing an end, analysts see interest shifting from the dollar to other currencies that offer investors higher returns, some of which are those of developing economies. Meanwhile, Oil exporters Mexico's peso gained 0.8% and Colombia's peso added 0.1% as crude prices shot up as the Israel-Hamas conflict raged on. Among individual equity indexes, Brazil's Bovespa advanced 1.5%, with Telefonica's Brazilian unit surging 3.7% after the firm reported upbeat net profit for the third quarter. Cielo added 1.1% after the country's largest media company payment system posted an 8.3% increase in net profit during the third quarter. Mexico's benchmark index climbed 0.4% with Banorte up 1.4% after the financial group posted a 15% increase in third-quarter net profit, propelled by double-digit growth in almost all of its loan sectors. Chilean and Peruvian stocks and currencies saw limited action with the local markets closed due to a public holiday. Key Latin American stock indexes and currencies at 1441 GMT: Stock indexes Latest Daily YTD % % change change MSCI Emerging 916.85 0.18 -4.28 Markets MSCI LatAm 2227.01 1.81 4.35 Brazil Bovespa 114822.9 1.48 4.64 1 Mexico IPC 49260.39 0.4 1.64 Chile IPSA 0.00 0 2.76 Argentina MerVal 594087.5 2.579 193.98 1 Colombia COLCAP 1096.32 0.75 -14.83 Currencies Latest Daily YTD % % change change Brazil real 5.0086 0.62 -33.85 Mexico peso 17.9065 0.73 10.01 Chile peso 894.9 0.00 -31.32 Colombia peso 4110.81 0.11 -27.46 Peru sol 3.8268 0.01 -15.41 Argentina peso 349.9500 0.01 -94.68 (interbank) Argentina peso 895 2.79 -97.85 (parallel) (Reporting by Johann M Cherian in Bengaluru; editing by Mark Heinrich)