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Mexico inflation rises 5.57% in July

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Chile's consumer prices up 0.7% in July

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Rate decisions due from Peru later in the day

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Eletrobras, Embraer ( ERJ ) shares up after results

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Latam stocks index up 2%, FX up 0.9%

(Updated at 1920 GMT)

By Lisa Pauline Mattackal and Ankika Biswas

Aug 8 (Reuters) - Latin American assets broadly jumped

on Thursday as encouraging U.S. jobs data brought some optimism

back to cautious markets, while the Mexican peso held on to its

strong footing even after a surprise interest-rate cut.

The Mexican peso was up 1.6% against the dollar,

but briefly pared gains after the central bank

lowered its benchmark interest rate

to 10.75% in a divided vote and noted it expects

inflationary pressures to allow for further discussion of rate

adjustments going forward.

The decision comes on the heels of data earlier in the

day showing the country's headline inflation in July reached a

level not seen in over a year, while the core index showed signs

of moderation.

Reuters reported

Mexico's ruling party is considering changes to a proposed

judicial reform in a bid to calm market concerns, including

making the election of judges a staggered process over many

years to reduce fears of a political takeover of the judiciary.

Meanwhile, data showing an improvement in U.S. jobless

claims figures lifted hopes that fears about a slowdown in the

world's largest economy, the United States, were overstated

after those concerns sparked a bout of market volatility that

sharply hit riskier emerging market assets.

The MSCI index for Latam currencies rose

0.9% to its highest level since late July, while the stocks

gauge rose nearly 2% to a one-week high.

"The depreciation that a lot of these currencies have

experienced actually represents some pretty attractive entry

points," said Brendan McKenna, FX strategist at Wells Fargo,

though adding emerging market currencies were likely to be

somewhat volatile until the U.S. economic picture becomes more

clear.

Latam currencies jumped across the board, with the Brazilian

real rising 1.5% and hitting a two-week high intraday.

The Colombian peso also climbed 1.8% to a

one-week high, tracking strong gains in

oil prices. The country's inflation data is also scheduled

for later in the day.

A

Reuters poll

showed Colombia's economy is forecast to have grown 2.2% in

the second quarter, picking up pace from the first three months.

Among others, Chile's peso rose 0.8%, with data

reflecting the nation's

consumer prices

rose slightly above expectations in July.

In last month's projections, the Chilean central bank

cautioned inflation would significantly rebound and only meet

its 3% target by the first half of 2026.

Peru' sol inched up 0.1% ahead of a central bank

monetary policy decision, due later in the day.

Argentina's benchmark stock index leapt 4.7%,

leading broad gains in Latam stocks.

Shares of planemaker Embraer ( ERJ ) jumped 9.5% after

second-quarter net income jumped almost 40%, while shares of

Brazil's largest power company Eletrobras rose 2.2%

after the company reported a nearly 8% rise in net profit.

Key Latin American stock indexes and currencies at 1920 GMT:

MSCI Emerging Markets 1047.71 -0.25

MSCI LatAm 2207.28 1.73

Brazil Bovespa 128664.02 0.9

Mexico IPC 53051.05 0.7

Chile IPSA 6275.72 1.34

Argentina Merval 1529340.55 5.315

Colombia COLCAP 1307.47 0.82

Brazil real 5.5673 1.19

Mexico peso 18.9626 1.58

Chile peso 935.5 0.78

Colombia peso 4059 1.75

Peru sol 3.7165 0.14

Argentina peso (interbank) 936 0

Argentina peso (parallel) 1355 2.21402214