* Mexican peso outperforms * Chile, Argentina, Peru and Colombia stock markets shut * Brazil"s real pauses ahead of c.bank meet (Adds comments, updates prices throughout) By Medha Singh and Shashank Nayar Dec 8 (Reuters) - The Mexican peso firmed on Tuesday while other Latin American currencies sagged against a perky dollar as positive coronavirus vaccine updates eclipsed concerns about resurgent infections. Mexico"s peso advanced 0.6% to trade at 19.7921 against the greenback despite mixed oil prices. The country"s currency commission said on Monday it would hold two dollar auctions totaling $3 billion using its swap line with the U.S. Federal Reserve, aimed at boosting liquidity. Broadly, world markets recovered after further encouraging updates on vaccines fueled bets of a swift economic recovery, eclipsing jitters over no Brexit deal and new curbs to fight the pandemic"s spread. Brazil"s real paused at a 6-month high ahead of a central bank meeting on Wednesday where policymakers are expected to maintain the benchmark Selic rate at a record low of 2.0%. Data, however, showed inflation in the country topped the central bank"s official year-end target, lending weight to expectations that the tightening cycle will begin next year and earlier than thought. "The rise in the headline rate was, once again, pushed up by surging food inflation... there"s little evidence so far that this is translating into broader inflationary pressures," said William Jackson, chief emerging markets economist at Capital Economics. Sao Paolo-listed shares dipped after rising as much as 0.5% earlier in the session. Food processor BRF SA surged 9% after it said it aims to invest about 55 billion reais ($10.8 billion) in the next 10 years to expand its business. Meanwhile, stock markets in Chile, Argentina, Peru and Colombia remain shut for holiday. Chile"s central bank left headline rates steady at 0.5% as expected on Monday with traders and analysts predicting rates to remain unchanged for the next year. Chilean peso ended near one-year high on Monday. Argentina"s Buenos Aires province has extended an already-delayed deadline to Jan. 4 for bondholders to agree a deal to restructure some $7 billion in foreign debt, the local government said in a statement. Pressure on sovereign debt profiles among Latin American countries will continue in 2021, in part due to an uneven recovery in the region, Fitch Ratings agency said on Tuesday. Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 1252.32 -0.09 MSCI LatAm 2367.83 -0.82 Brazil Bovespa 113308.17 -0.25 Mexico IPC 42946.15 -0.71 Chile IPSA - - Argentina MerVal - - Colombia COLCAP - - Currencies Latest Daily % change Brazil real 5.1179 0.10 Mexico peso 19.7509 0.54 Chile peso - - Colombia peso 3488.5 -0.01 Peru sol 3.6028 0.00 Argentina peso (interbank) 81.6500 -0.10 Argentina peso (parallel) 146 3.42 (Reporting by Medha Singh, Shashank Nayar and Sruthi Shankar in Bengaluru; Editing by Kirsten Donovan and Chizu Nomiyama)