* Strong dollar knocks down rest of Latam FX

* Brazil's Vale Q1 net profit beats expectations

* Brazilian airline Gol posts Q1 beat

* Chile unemployment rate hits 7.8% in quarter through March (Updates prices)

By Shreyashi Sanyal and Susan Mathew

April 28 (Reuters) - Latin American stocks rose on Thursday as a surge on Wall Street bolstered a earnings-related rally with results from heavyweights such as Vale and Petrobras, while currencies broadly weakened against a dollar at twenty-year highs.

Brazil's Bovespa .BVSP rose 1% with miner Vale VALE3.SA rising 3.6% after first quarter profit beat expectations.

State-run Petrobras PETR4.SA rose 1.6% after reporting a rise in oil production in the first quarter as additional wells ramped up or came online.

Planemaker Embraer EMBR3.SA rallied 6.9% on reaffirming its full-year forecast after reporting a narrowed first-quarter net loss, while airline Gol GOLL4.SA rose 3.7% on posting higher-than-expected first quarter net income.

Other Latam bourses firmed between 0.2% and 0.7%, with the Mexican benchmark .MXX recovering from two-month lows.

Among currencies, Chile's peso CLP= slid 1% to hit its lowest this year, at 856.0 to the dollar as prices of copper, Chile's top export, hit near three-month lows on worries about slowing growth.

Advance data on U.S. first quarter GDP showed growth likely slowed sharply in the first quarter as a wave of COVID-19 cases curbed activity. Along with worries about a slowdown in China, worries have hit sentiment off-late, spurring afer assets including the dollar.

Mexico's peso MXN= lost 0.5%, while Colombia's peso COP= dropped to over three-month lows. Brazil's real BRBY outperformed, rising 0.3%.

The U.S. data implies a risk, more so for neighboring Mexico given its reliance on United States for its exports, said Janneth Quiroz, chief economist at Monex Grupo Financiero.

Resource-rich Latin American markets have benefited from the boom in commodity prices, but as central banks in the region continue their tightening cycles to fight rising inflation and shore up their currencies, investors are starting to question the impact of such policy measures.

"Tighter monetary policy globally and domestically weighs on economic growth, creating a challenging backdrop for emerging market currencies in the coming quarters," strategists at UBS wrote in a client note.

"High commodity prices are a boon for exporters, enabling their currencies to stage temporary rallies, but they also put pressure on the lower-income parts of populations, in particular, across the board."

On the economic data front, outstanding loans in Brazil grew in February despite a rise in borrowing costs due to aggressive monetary policy tightening, according to the central bank.

Chile's unemployment rate CLUNR=ECI hit 7.8% in the January-March period, up from the 7.5% seen in the quarter through February.

Key Latin American stock indexes and currencies at 1911 GMT: Stock indexes

Latest

Daily %

change MSCI Emerging Markets

1054.78

1.06 .MSCIEF

MSCI LatAm

2363.76

1.79 .MILA00000PUS

Brazil Bovespa

110462.00

1.02 .BVSP

Mexico IPC

52608.81

0.49 .MXX

Chile IPSA

4787.70

0.26 .SPIPSA

Argentina MerVal

90703.00

0.744 .MERV

Colombia COLCAP

1588.80

0.16 .COLCAP

Currencies

Latest

Daily %

change Brazil real

4.9528

0.29 BRBY

Mexico peso

20.4642

-0.43 MXN=D2

Chile peso

855.9

-1.16 CLP=CL

Colombia peso COP=

3977.9

-0.75 Peru sol

3.84

-0.36 PEN=PE

Argentina peso

115.1800

-0.12 (interbank) ARS=RASL

Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru; Editing by Lisa Shumaker and Marguerita Choy