(In 10th paragraph corrects to remove reference to three

sessions of losses)

*

Argentina leads Latam stocks higher

*

Fed expected to hold rates

*

Colombia, Brazil rate decisions expected

*

Brazil jobless rate falls

*

Kenyan court overturns 2023 finance law

By Lisa Pauline Mattackal

July 31 (Reuters) - Equities and currencies in Latin

America rose broadly on Wednesday, boosted by a rebound in oil

prices and a weaker U.S. dollar ahead of interest rate decisions

from the Federal Reserve's and multiple local central banks

later in the day.

MSCI's index tracking Latin American stocks

jumped 1.5%, tracking global stocks higher as investors looked

for the U.S central bank to signal when it could ease policy.

The U.S. dollar slipped 0.3%, boosting MSCI's

emerging market currency index to a nearly

two-week high.

"The expectation is the Fed could be a little bit dovish in

signaling they are beginning to contemplate a rate cut in

September," said Niels Christensen, chief analyst at Nordea.

"It's been a mixed bag for emerging markets, as the Fed has

kept rates higher for longer, but several are doing ok because

global growth is not that bad."

A rebound in commodity prices also lifted Latin American

assets, with oil prices picking up from seven-week lows on

concerns about escalating conflict in the Middle East after

Palestinian militant group Hamas said its leader Ismail Haniyeh

was killed in Iran.

Among Latin American currencies, Chile's peso led

gains, rising 1.5% ahead of an expected 25 basis point interest

rate cut later in the day.

The Colombian peso rose 0.5%, while the Brazilian

real slipped 0.6% against the greenback ahead of rate

decisions in both countries.

Colombia is expected to ease policy from 11.25% to 10.75%,

while Brazilian policymakers are seen holding borrowing costs at

10.50% for a second time.

Copper prices also recovered, lifting Peru's sol

0.8% against the dollar, while an index tracking Latin American

currencies rose 0.3%.

Mexico's peso jumped 0.9% after declining for two

straight sessions.

Local bourses rose, with Argentina's Merval jumping

2.5% as oil company YPF rose 4.1%.

Stock indexes in Brazil, Mexico, and Colombia

rose between 0.6% and 1.4%.

On the economic data front, Brazil's jobless rate fell to

6.9% in the three months through June, its lowest level in a

decade.

A softer stance from the Fed would be a welcome signal for

emerging markets, which have struggled this year as higher

developed market rates and a stronger dollar have weighed on

investor appetite for EM assets.

The Latin American stocks index is on course for its best

monthly performance this year, with gains of 0.8%, though the

currency index is on track for a second straight month of

declines.

Conflict in Venezuela over the result of Sunday's

presidential election continued, as Group of Seven foreign

ministers approved a declaration announcing concerns on the

declared results.

Elsewhere in emerging markets, Kenya's Court of Appeal on

Wednesday declared the government's 2023 finance law

unconstitutional. The Kenyan shilling strengthened 0.8% against

the dollar.

HIGHLIGHTS

** High-frequency traders, brokerage firms to face brunt of

regulatory curbs on options

** Zelenskiy signs law allowing Ukraine debt payment

suspension

** Chile's unemployment rate hit 8.3% in the quarter through

June; manufacturing output falls

Key Latin American stock indexes and currencies:

Latest Daily %

change

MSCI Emerging 1086.68 1.41

Markets

MSCI LatAm 2199.55 1.45

Brazil Bovespa 127222.3 0.86

4

Mexico IPC 53106.04 1.49

Chile IPSA 6463.40 -0.04

Argentina MerVal 1446611. 2.455

85

Colombia COLCAP 1343.59 0.62

Currencies Latest Daily %

change

Brazil real 5.6460 -0.48

Mexico peso 18.6053 0.78

Chile peso 941.5 1.26

Colombia peso 4059.95 0.48

Peru sol 3.7086 0.20

Argentina peso 931.5000 0.11

(interbank)

Argentina peso 1340 3.36

(parallel)