EMERGING MARKETS-Brazil stocks near 10-week high as Vale rallies

SAO PAULO, Jan 18 (Reuters) - Brazilian stocks held near a 10-week high on Wednesday as shares of miner Vale SA jumped on hopes that the renewal of a shareholder agreement could improve corporate governance.

Local newspaper Valor Econômico reported that Vale's controlling shareholders have discussed grouping the miner's common and preferred shares as part of the renewal.

Analysts at Banco BTG Pactual SA said the changes to corporate governance included in the revised accord could unlock up to $18 billion in value.

Preferred shares in Vale rose as much as 4.6 percent to 29.89 reais, a more than three-year high. Common shares rose 2.55 percent to 31.35 reais, narrowing the discount between the two classes of stock to the smallest since November.

Shares of Bradespar SA, which holds a 21.2 percent stake in Vale's controlling shareholder Valepar SA, rose 5.8 percent, leading gains in Brazil's benchmark Bovespa stock index.

The advance was somewhat offset by falling bank shares as traders booked profits from recent gains. Shares of Banco Bradesco SA slid from a 10-week high reached on Tuesday.

Latin American currencies were mostly weaker ahead of a speech by Federal Reserve Chair Janet Yellen later on Wednesday.

Demand for high-yielding assets in the region has waned on bets that the Fed could raise interest rates faster than originally expected if U.S. President-elect Donald Trump stands by his pledges of heavy spending and lower taxes.

The Mexican peso, which has plunged due to Trump's protectionist threats, weakened over 1 percent on Wednesday.

Key Latin American stock indexes and currencies at 1430 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 897.04 0.24 3.78 MSCI LatAm 2429.89 -0.41 4.24 Brazil Bovespa 64347.82 -0.01 6.84 Chile IPSA 4248.08 0.4 2.33 Chile IGPA 21164.01 0.36 2.07 Argentina MerVal 18886.84 0.05 11.64 Venezuela IBC 30346.12 -4.38 -4.29 Currencies daily % YTD % change change Latest Brazil real 3.2225 -0.34 0.83 Mexico peso 21.7400 -1.06 -4.58 Chile peso 659.4 -0.55 1.71 Colombia peso 2933.1 -0.53 2.33 Peru sol 3.354 -0.30 1.79 Argentina peso (interbank) 15.9350 -0.16 -0.38 Argentina peso (parallel) 16.8 0.06 0.12 (Reporting by Bruno Federowski; Editing by Meredith Mazzilli)