* MSCI Latam stocks index at 10-month high * Chilean stocks outperform peers this week By Ambar Warrick Jan 8 (Reuters) - Brazilian stocks hit a record high on Friday on expectations of increased stimulus and accommodative monetary policy, while Latin American currencies eyed weekly losses in the wake of record-high coronavirus infection rates. The Bovespa index rose 0.6% to a record high in early trade, while the MSCI"s index of Latam stocks rose 0.9% to a 10-month high, and was set to add 3% this week. Chilean stocks were the best weekly performers in the region as markets bet on a solid economic recovery in the country this year. The Democrats" taking of the U.S. Senate thus week pointed to increased liquidity measures in the world"s largest economy, boosting the outlook for global equities. "Fresh stimulus hopes lifted global stocks over the last 24 hours ... A unified (U.S.) government as the result of the "blue sweep" victory will smooth the path to more fiscal stimulus. This points to the reflation trade remaining intact," Mark Haefele, chief investment officer at UBS Global Wealth Management wrote in a note. But in local foreign exchange markets, this optimism was cut short as infections in major Latin American economies rose at record rates. This saw many regional currencies mark steep losses on Thursday, erasing all gains made earlier in the week. Brazil"s real and Mexico"s peso both fell more than 1.8% each, while Chile"s peso marked its worst day in nearly seven months. "We may be in a consolidation phase for now with respect to EMFX, but do think that the USD weakness trade has more to give," Citi analysts wrote in a note. Brazil"s real rose 1.2% on Friday, tracking a rise in prices of iron ore, one of the country"s top exports. But it was set for its worst week since late-September. While most emerging market currencies are expected to benefit from a vaccine-driven economic recovery eventually this year, they still face near-term headwinds from disruptions caused by the virus. For the day, most Latam currencies apart from the real edged higher. The MSCI"s index of regional currencies was set to lose more than 2% this week. The U.S. dollar also saw increased buying after data showed the economy shed jobs for the first time in eight months. Key Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1345.37 1.74 MSCI LatAm 2517.20 0.61 Brazil Bovespa 123066.41 0.56 Mexico IPC - - Chile IPSA 4560.49 0.7 Argentina MerVal - - Colombia COLCAP 1435.74 - Currencies Latest Daily % change Brazil real 5.3325 1.24 Mexico peso 19.9050 0.47 Chile peso 713.6 -0.17 Colombia peso 3468 0.55 Peru sol 3.6137 0.17 Argentina peso 85.0900 -0.09 (interbank) (Reporting by Ambar Warrick in Bengaluru Editing by Nick Zieminski)