Real jumps nearly 2% Mexican peso lags peers on the Russian rouble, bonds rally Adds details, updates prices by Susan Mathew and Ambar Warrick Jan 19 Reuters -- Brazil's real led gains among Latin American currencies on Wednesday, supported by a jump in iron ore prices on signs of more stimulus in major importer China, with most other commodity-linked currencies following suit. The real surged 1.8% to its highest since November, following a rebound in iron ore prices after China's central bank signaled more measures to support the economy. As far right Bolsonaro drops, leftist former President Luiz In cio Lula da Silva is gaining popularity. Chile's peso was up 1% because of positive news from China, which led to an increase in copper prices. The strength in oil prices saw exporter Colombia's peso increase by 1.1%. Mexico's peso fell 0.2%, extending losses into a second session after data showed that the Mexican economy contracted in December, raising fears of a fourth-quarter recession. The Pan American Health Organization warned that the disease was spreading like never before in the Americas and the country's COVID 19 cases rose at a record pace. Emerging market assets came off recent losses as a dip in the dollar helped ease some pressure from rising Treasury yields. In a note from Capital Economics, the net capital outflows from emerging markets have been slowed over the past month, with the exception of Turkey. The global backdrop for EMs emerging markets this year will be challenging, especially for countries where external vulnerabilities are high or growing, they said, referring to Turkey and parts of central and eastern Europe and Latin America. Russia's rouble went up 1%, while local and Ukrainian government bonds rallied after Russia's deputy foreign minister said Moscow had no plans to strike Ukraine. U.S. Secretary of State Antony Blinken said Russia could launch an attack on its neighbour at very short notice. He is going to meet Russian Foreign Minister Sergei Lavrov on Friday. Argentina's heavily controlled peso was flat after Vice President Cristina Fernandez de Kirchner slammed payments to the International Monetary Fund as costing more than COVID 19, as talks over a new $40 billion deal show little signs of progress. After Citi announced it was going to sell its Mexican consumer banking unit last week, analysts from Bank of America Securities said Mexican bank Banorte would be best placed to buy the assets.