* Brazil industrial output lifts real * Mexican peso rebounds from sharp declines overnight * Russian rouble surges, South African rand firms (Updates prices throughout, adds comments) By Shreyashi Sanyal Nov 4 (Reuters) - Emerging market currencies rallied on Wednesday against a weaker dollar as U.S. presidential election candidate Joe Biden led in ballots counted in some battleground states, with Brazil"s real and the Russian rouble surging among peers. Brazil"s currency - the worst performing emerging market currency this year - jumped 1.7% against the dollar after industrial production rose a forecast-beating 2.6% in September. The figures remain consistent with other data that have shown rapid recovery in the manufacturing and industrial sectors, while Brazil"s dominant services sector lagged. The real has fallen nearly 30%, with record low interest rates adding pressure on the currency. Russia"s rouble jumped 2.2%, logging its best day since mid-March, with rising oil prices adding to the momentum. The rouble only traded on the global interbank market on Wednesday as Moscow"s exchange remained closed for a public holiday, amid thin trading volume. The Mexican peso, which had suffered from the Trump administration"s hard line on trade in recent years, rose 0.6% as Democrat Biden led votes counted so far in Wisconsin and Michigan, a boost in his quest to defeat Republican President Donald Trump. The recovery followed a tumble of as much as 4% overnight. "They (markets) priced in blue wave where the Democrats would take the Presidency and the Senate. Then last night you had betting odds thinking it would be a Trump presidency with a Republican Senate. This morning we"ve kind of come full circle with a Biden presidency, a Republican Senate and a Democratic House," said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute in St. Louis. Trump falsely claimed victory early on Wednesday and also made unsubstantiated claims of electoral fraud. He said his lawyers would be taking his case to the U.S. Supreme Court, without specifying what they would claim. Emerging market hard-currency bonds tallied up healthy gains on Wednesday after a sharp drop in U.S. Treasury yields reinvigorated the hunt for yield and soothed market jitters across some of the developing world over the U.S. elections. The South African rand strengthened 1.2%, while China"s yuan firmed after President Xi Jinping flagged strong local consumption trends and said China was moving faster to open up its financial markets. Stocks across emerging markets took their cue from Wall Street as investors priced in more fiscal stimulus for the world"s biggest economy with either candidate winning the U.S. vote. "Biden remains a small front-runner and it would appear the Senate will remain Republican ... but with regards to fiscal stimulus the market believes that a deal of ~$1 trillion is possible regardless of the ultimate outcome," said Yousef Abbasi, global market strategist at StoneX. The MSCI"s EM equities index gained 1.5% and its Latin American counterpart added 2.0%. Latin American stock indexes and currencies at 2007 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1137.77 1.51 MSCI LatAm 1898.27 2.03 Brazil Bovespa 97990.89 2.1 Mexico IPC 37515.27 0.13 Chile IPSA 3518.05 -0.1 Argentina MerVal 46982.21 -2.05 Colombia COLCAP 1154.32 0.26 Currencies Latest Daily % change Brazil real 5.6580 -0.04 Mexico peso 20.9820 0.56 Chile peso 754.1 0.64 Colombia peso 3813.57 0.10 Peru sol 3.5998 -0.25 Argentina peso (interbank) 79.0200 -0.11 Argentina peso (parallel) 157 5.10 (Reporting by Shreyashi Sanyal in Bengaluru; Additional reporting by Karin Strohecker in London and Sinead Carew in New York; Editing by William Maclean and Grant McCool)