* Mexican peso extends winning streak to fourth day * Brazil services sector expands in Sept for first time since Feb * Most Latam assets higher after oil prices surge over 6% (Updates prices throughout; Adds comments, bullets) By Shreyashi Sanyal Oct 5 (Reuters) - The Brazilian real surged on Monday, rebounding sharply from declines last week after signs of improvement in the country's services sector, while Mexico's peso rose as its government presented an almost $14 billion infrastructure investment plan. The real jumped 2% after a purchasing managers' survey showed domestic services sector expanded in September for the first time in seven months. Analysts at BofA Global Research continued to see activity improving in Brazil, especially in the housing sector. For all of Latin America, BofA analysts expect volatility to build during the fourth quarter as headlines are filled with updates on U.S. elections, possible new waves of coronavirus and vaccines. Brazil's government will on Wednesday reveal how it plans to fund its new social welfare program Renda Cidada, Senator Marcio Bittar said, adding that the proposal will respect the administration's key fiscal spending cap rule. Mexico's peso strengthened 1%, to its highest level in more two weeks as the investments worth over 297 billion pesos ($13.83 billion) is the first concrete sign of a renewed readiness by corporate bosses to invest under President Andres Manuel Lopez Obrador. "This signals the government's ability to act on national priorities," said Horacio Carias, senior quantitative portfolio manager at Orion Portfolio Solutions. "All in all, these are strong signs that the Mexican government is serious about creating the right environment for growth and that should benefit the relative value of the peso." Mexico's currency has lost 11.5% so far in the year, faring somewhat better than its peers, in part because of the strong connection with the U.S. economy, its main trading partner. The peso remains exposed to volatility leading up to the Nov. 3 U.S. elections. Stocks on Wall Street rose sharply as investors viewed more fiscal stimulus as likely and after news U.S. President Donald Trump will leave the hospital where he is being treated for coronavirus. Most major currencies in the region rose as global risk sentiment improved, with the MSCI's index for Latin American currencies rising 1.2%. Oil exporter Colombia's peso advanced as crude prices surged more than 6%, while the Chilean peso bucked the day's trend among peers to fall 1% as prices of its no.1 export, copper, fell. Latin American stocks also rose, with Brazil's Bovespa leading gains as it jumped over 2%. Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 1092.96 1.04 MSCI LatAm 1867.48 2.76 Brazil Bovespa 96125.92 2.24 Mexico IPC 36725.31 0.23 Chile IPSA 3675.83 0.27 Argentina MerVal 44288.37 1.452 Colombia COLCAP 1168.04 0.26 Currencies Latest Daily % change Brazil real 5.5640 0.05 Mexico peso 21.3890 1.03 Chile peso 797.4 -1.08 Colombia peso 3827.84 1.09 Peru sol 3.5877 0.84 Argentina peso (interbank) 77.0100 -0.08 Argentina peso (parallel) 146 2.74 (Reporting by Shreyashi Sanyal in Bengaluru; editing by Grant McCool and Cynthia Osterman)
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