EMERGING MARKETS-Latin American markets rise as Fed rate relief boosts risk appetite

* Chile's economy holds steady in September * Czech central bank puts off easing cycle as it holds rates * MSCI Latam FX index at six week high * EM stocks, currencies rise (Updated at 3:40pm ET/1940 GMT) By Johann M Cherian and Lisa Pauline Mattackal Nov 2 (Reuters) - Most Latin American stocks and currencies gained on Thursday on rising risk appetite as investors hoped U.S. interest rates had peaked, while Chilean markets got a lift after data reflected steady economic performance in September. MSCI's index tracking South American stocks added 1.7% in its best session in nearly one month, while a basket of local currencies also added 1.6% against a weaker dollar, touching its highest since Sept. 22. The greenback and U.S. Treasury yields eased after the Federal Reserve kept interest rates unchanged on Wednesday, with markets judging Chairman Jerome Powell's comments less hawkish than expected despite not ruling out another hike. Gains in Latin America continued a strong day for emerging market stocks and currencies, which have been roiled in recent months as worries about higher U.S. rates and slowing global economic growth diminished investor interest. "We are constructive on LatAm assets, as we believe the Fed is done with the tightening cycle," Bertrand Delgado, director, Global Markets at Societe Generale wrote in a note. MSCI's index tracking emerging markets stocks rose 1.7%, its largest daily gain since late-July, while a basket of currencies strengthened 0.5% to an over one-month high. Meanwhile, Chile's benchmark index rose 1% after the central bank said economic activity remained unchanged in September from the previous year, coming in well above market forecasts, and its currency gained 0.7%. "Right now (Chile's economy) is going to be primarily affected by the international flow of trade and you're going to see some of those economic numbers be steadier than they were before," said Juan Perez, director of trading at Monex. Colombia's Colcap added 0.8%, while Peru's Lima general index slipped 0.3%. Meanwhile, copper exporter Peru's currency leapt 1.8% as prices of the red metal gained against a weakening greenback. Rising oil prices made the currencies of top exporters Colombia's and Mexico the other top regional performers, both rising 1.4% against the dollar, both at their highest in over a month. Brazil's central bank cut its benchmark interest rate by 50 basis points for the third time in a row after market hours on Wednesday, as expected. Currencies and equities of the two major economies in the region, Brazil and Mexico, saw limited action as the markets were closed on account of a public holiday. JPMorgan's influential bond index unit put Venezuela's sovereign bonds and the notes of its state oil firm PDVSA on an "index watch observation period" for its main emerging market EMBI index until Jan. 31. Key Latin American stock indexes and currencies at 1940 GMT: Latest Daily % change MSCI Emerging Markets 931.46 1.69 MSCI LatAm 2267.63 1.68 Brazil Bovespa 115052.96 1.69 Mexico IPC 49787.84 1.48 Chile IPSA 5460.65 0.98 Argentina MerVal 650872.19 5.617 Colombia COLCAP 1097.18 0.81 Currencies Latest Daily % change Brazil real 4.9534 0.36 Mexico peso 17.5270 1.36 Chile peso 888.1 0.77 Colombia peso 4022.5 1.37 Peru sol 3.7572 1.85 Argentina peso 350.0000 0.00 (interbank) Argentina peso 905 1.10 (parallel) (Reporting by Johann M Cherian and Lisa Mattackal in Bengaluru Editing by Marguerita Choy and Aurora Ellis)