* EM stocks index set to end week higher

* Latam stocks join global rally

* Brazil inflation tops estimates

* Colombian peso at lowest since March 2020 (Updates prices)

By Susan Mathew

June 24 (Reuters) - Emerging market shares rose on Friday as investors started to scale back bets on the extent of monetary policy tightening by major central banks, while Mexico's peso extended gains to a sixth straight session.

A day after Mexico's central bank hiked its benchmark interest rate by a record 75 basis points to 7.75%, the peso MXN= rose 0.7% to hit two week highs, adding to weekly gains that would see it mark its best week in three months. It has gained 2.8% over six sessions.

"The global energy crisis helps Mexico as a producer," said Juan Perez, director of trading at Monex USA.

Perez added that geopolitical changes in Latin America, which has seen some leftist candidates come to power, should support the peso as it favors Mexico's current leftist government.

A sliding dollar also aided gains among emerging market currencies on Friday.

Brazil's real BRBY cut a chunk of its session losses, last down 0.1%. Data showed Brazilian consumer prices rose more than expected in the month to mid-June, despite central bank attempts to control it.

Among stocks, MSCI's index of emerging market currencies .MIEM00000CUS firmed 0.2%, erasing weekly losses.

Its shares counterpart .MSCIEF jumped 1.7% and was on track to end a central bank heavy week about 0.8% higher after two weeks of losses.

Markets had taken a hit earlier this week as investors fretted over a likely recession as central banks stuck to their aggressive tightening policies.

But as commodity prices fell, inflation fears eased somewhat and markets brought forward their views on the timing of rate cuts to counter a possible recession.

In Latin America, stocks joined a global rally, with regional bourses up between 0.4% and 1.7%.

Elsewhere, as copper prices plunged on demand uncertainty amid growth fears, Chile's peso CLP= dipped another 1.4% to record lows.

The currency is set to mark its worst week in over a decade, with a strike in state-owned Codelco mine, the largest copper producer in the world, leaving investors worried about a hit to copper output.

Easing some fears, union leaders at Codelco reached an agreement with the company to end the strike.

In Colombia, the peso COP= slumped 1% to over two-year lows, with eyes on President-elect Gustavo Petro as he firms up congressional allies ahead of the administration's takeover in August.

A Reuters poll showed majority analysts expecting a 150 basis points hike to 7.50% by the Colombian central bank next week, which would be the biggest single rate hike in Colombia since May 1998.

Key Latin American stock indexes and currencies at 1822 GMT: Stock indexes

Latest

Daily %

change MSCI Emerging Markets

1012.38

1.71 .MSCIEF

MSCI LatAm

2055.72

0.74 .MILA00000PUS

Brazil Bovespa

98511.07

0.44 .BVSP

Mexico IPC

47651.98

2.13 .MXX

Chile IPSA

5006.35

1.5 .SPIPSA

Argentina MerVal

82678.39 -0.591 .MERV

Colombia COLCAP

1361.30

1.68 .COLCAP

Currencies

Latest

Daily %

change Brazil real

5.2325

-0.07 BRBY

Mexico peso

19.8720

0.65 MXN=D2

Chile peso

917.1

-1.59 CLP=CL

Colombia peso COP=

4131.1

-0.85 Peru sol

3.7782

-0.75 PEN=PE

Argentina peso

124.2400

-0.11 (interbank) ARS=RASL

Reporting by Susan Mathew in Bengaluru; Editing by William Maclean and Diane Craft