EMERGING MARKETS-Latam stocks rally on global manufacturing data

* Chinese, U.S. manufacturing rose in August

* Price for oil in Petrobras oil-share swap expected

* Bovespa up 2.35 pct, Mexico's IPC gains 1.75 pct (Updates to afternoon)

By Luciana Lopez

SAO PAULO, Sept 1 (Reuters) - Latin American stocks recorded their best session in nearly three months on Wednesday as stronger U.S. and Chinese manufacturing data sharpened risk appetite around the world.

The MSCI Latin American stocks index <.MILA00000PUS> jumped 2.85 percent in the afternoon, which could give the index its biggest single-day gain since June 10.

Stocks rose around the world on data showing U.S. and Chinese manufacturing expanded in August, boosting hopes for the global economic recovery. For more, see: [ID:nTOE68001O] and [ID:nN01115648]

The data from the world's No. 1 and 2 economies, respectively, sparked broad rallies in equities.

Latin American currencies also firmed on the news and the Brazilian real hit its strongest level in four months. [ID:nN01126794]

The Chinese data helped a bit more than the U.S. numbers, said Julio Hegedus, chief economist for InterBolsa in Sao Paulo.

"There's still a lot of uncertainty about the U.S. economy," he said. "There are still contradictory data coming from there."

Last year China surpassed the United States to become Brazil's main trading partner.

"China is fundamental for how the rest of the world works," said Roberto Padovani, chief Brazil economist at WestLB in Sao Paulo.

Brazil's benchmark Bovespa index <.BVSP> advanced 2.44 percent to 66,735.84 in the afternoon.

Shares of mining giant Vale , the world's largest producer of iron ore, climbed 4.10 percent. Vale counts China as a major customer.

State-controlled oil company Petrobras gained 3.15 percent. The stock has plunged 27 percent this year through Tuesday's close on uncertainty around a large capitalization plan.

But the Brazilian government is expected to announce on Wednesday how much it will charge Petrobras for crude reserves to be used in an oil-for-shares swap linked to a stock offering, which could ease uncertainty around the stock. [ID:nN01255508]

Banco do Brasil , Latin America's largest bank by assets, moved up 2.95 percent, while Itau Unibanco , Latin America's largest private sector bank, rose 0.69 percent and Bradesco advanced 2.69 percent.

"We remain positive on the Brazilian banks, given the strong economic momentum, in both corporate and labor markets," UBS analyst Alcir Freitas wrote in a report dated Tuesday.

Mexico's IPC index <.MXX> gained 1.75 percent, reaching its highest intraday levels since Aug. 23.

America Movil , Latin America's biggest wireless provider, rose 2.5 percent. Mining giant Grupo Mexico advanced 1.6 percent.

Chile's IPSA <.IPSA> moved up 0.98 percent and hit a new life intraday high.

"We've had two really good things for today: good news abroad and good news in the local market in terms of corporate results," said Rodrigo Jacob, research director for BICE brokerage in Santiago.

Banco Santander Chile moved up 2.47 percent.

Shares of retailers also rose: Falabella advanced 1.91 percent and Cencosud 2.45 percent. (Additional reporting by Alvaro Tapia in Santiago; Editing by Dan Grebler)