*

U.S. jobs data suggests stable labor market

*

Trump signs trade deal with Vietnam, markets hope for more

*

Minutes show Chile's central bank considered a cut

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MSCI Latam FX up 0.5%, stocks gain 1.1%

(Updates with afternoon trading levels)

By Ragini Mathur and Purvi Agarwal

July 3 (Reuters) - Most Latin American currencies gained

on Thursday, as investors shifted to riskier assets following

stronger-than-expected U.S. jobs data that underscored the

resilience of the labor market, while attention remained on

global trade deals involving the United States.

U.S. job growth was solid in June, and the unemployment rate

unexpectedly fell, suggesting the labor market remained stable

and potentially enabling the Federal Reserve to delay resuming

its rate-cutting cycle until September.

"I don't think that the market could take away something

too hawkish from this but also it's difficult to price

substantially more cuts that are enough to drive more dollar

weakness on monetary policy expectations," said Gilberto

Hernandez-Gomez, LatAm local market strategist and vice

president at BBVA.

Investors were also relieved by some progress on the trade

front, as U.S. President Donald Trump finalized a deal with

Vietnam on Wednesday, imposing a 20% tariff on exports to the

United States, lower than the previously threatened 46%.

The dollar index traded higher on the day as

investors priced in fewer Fed rate cuts. MSCI's index for Latin

American currencies, meanwhile, rose 0.5% to its

highest since 2009.

Mexico's peso outpaced regional peers with a 0.7%

rise against the dollar, touching its highest since August 2024.

The Brazilian real also climbed 0.2%, hitting its

highest since October.

Minutes of the last meeting of Chile's central bank revealed

that it had considered a 25-basis-point cut, despite an

unchanged macroeconomic scenario. It ultimately held rates in

June. Chile's peso was last down 0.3%.

Meanwhile, the MSCI stocks gauge jumped

1.1%, trading around levels last seen in May 2024.

Heavyweight Brazilian shares gained 1.5%, boosted by

gains in financials and utilities.

Trump's tax-cut package cleared its

final hurdle

in U.S. Congress, as the Republican-controlled House of

Representatives narrowly approved the massive bill and sent it

to him for signing into law.

Earlier in the day, the United States lifted restrictions on

exports to China for chip design software developers and ethane

producers, further easing tensions between the two largest

economies.

Elsewhere in emerging markets, the International Monetary

Fund said it would combine the fifth and sixth reviews of

Egypt's $8 billion support program this fall. It also urged

Ukraine to adhere to its economic reforms and national revenue

strategy as its continues to combat Russia's invasion.

Highlights:

** Poland's July rate cut not the start of a cycle, central

bank chief says

** Sri Lanka's economic outlook positive but global trade

concerns pose risks, IMF says

** Colombia president recalls ambassador to US

Key Latin American stock indexes and currencies:

MSCI Emerging Markets 1235.23 0.41

MSCI LatAm 2387.62 1.06

Brazil Bovespa 141180.61 1.53

Mexico IPC 57967.78 -0.65

Argentina Merval 2073952.9 0.53

2

Chile IPSA 8270.43 0.02

Colombia COLCAP 1683.96 -0.59

Brazil real 5.4119 0.21

Mexico peso 18.6673 0.69

Chile peso 929.24 -0.31

Colombia peso 3987.5 -0.03

Peru sol 3.544 0.1

Argentina peso 1229.5 0.04

(interbank)

Argentina peso (parallel) 1215 2.06