* EMFX pressured by high U.S. yields * Latam stocks trade flat * Oil strength limits losses in Mexican, Colombian FX (Adds details, updates prices) By Susan Mathew and Ambar Warrick Feb 17 (Reuters) - Brazil"s real led losses across Latin American currencies on Wednesday in catch-up trade, with other units joining a broader downtrend in risk-driven assets as strength in U.S. yields and the dollar weighed. The real dropped 1% after logging little movement over the past few sessions due to a public holiday. Most other emerging market currencies retreated as U.S. Treasury yields rose on expectations of increased inflation, amid higher commodity prices and increased fiscal spending. This in turn pushed the dollar to a one-month highs, while an index of emerging market currencies fell 0.3%. "Given the magnitude of the yield backup, we would expect currency markets to be fixated on this space in the near term," said Mazen Issa, senior FX strategist at TD Securities. "There may be a worry from here that if we continue to see rates backup further - particularly real rates - that equities could roll over." Latam stocks were flat on Wednesday, mirroring their broader peers. Stretched fiscal spending and a delay in COVID-19 vaccine rollouts in Latam has seen the region"s assets lag emerging markets this year. Mexico"s peso weakened as much as 1%, with markets also keeping an eye on manufacturing hit by a deep freeze in Texas. Factories across parts of northern Mexico on Tuesday reported $2.7 billion in losses from blackouts that extended to a second day on limited natural gas supplies from Texas, where a rare winter freeze has left millions of customers without light or heat. "The dimension of the effects at the national level can be significant for the industry, as it comes at a time when the (Mexican) economy is just starting to recover," Citigroup strategists said in a note. But strength in crude markets limited losses in the peso, while Colombia"s currency also fared better than most of its peers. Chile"s peso reversed initial losses to hit a near one-month high, taking some support from recent gains in copper prices. The Argentine peso returned from an extended weekend to slide further into record low territory. Key Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1443.91 0.12 MSCI LatAm 2413.69 -0.17 Brazil Bovespa 120541.45 0.93 Mexico IPC 44962.99 0.59 Chile IPSA 4557.01 -2.06 Argentina MerVal 51999.58 1.036 Colombia COLCAP 1356.36 -0.5 Currencies Latest Daily % change Brazil real 5.4240 -0.94 Mexico peso 20.1927 -0.30 Chile peso 713.2 0.72 Colombia peso 3525.7 -0.15 Peru sol 3.6508 0.02 Argentina peso 88.9400 -0.45 (interbank) (Reporting by Susan Mathew in Bengaluru; editing by Jonathan Oatis)