* MSCI LatAm stocks down 0.8%, FX up 0.2%

* US economy sheds jobs in July

* Mexico inflation slows to lowest in more than six years

* Abelardo De La Espriella to be sworn in as Colombian

President

(Updates to afternoon trading levels)

By Utkarsh Hathi and Avinash P

Aug 7 (Reuters) - Most Latin American currencies

strengthened on Friday as a weaker-than-expected U.S. jobs

report weighed on the dollar and cooled expectations for a

Federal Reserve interest-rate hike next month, while equities

were mixed.

The U.S. Labor Department's report showed that the economy

shed 23,000 jobs in July, defying expectations of 80,000

additions, according to economists polled by Reuters. As a

result, the U.S. dollar index fell 0.4%, hitting a

seven-week low.

Money markets scaled back bets for a September Fed rate

hike, with traders pricing in a 44% chance of an increase, down

from 55% before the employment data, according to CME Group's

FedWatch tool.

"With not a solid belief in the Fed, terrible labor

situation, and Yen intervention...it's helping LatAm improve.

The monetary policy divergence is what's mattering right now,"

said Juan Perez, director of trading at Monex.

The U.S. payrolls surprise capped a week of central bank

decisions and inflation data across Latin America, offering

fresh cues on the region's monetary policy path.

MSCI's index tracking Latin American currencies

rose 0.2%, heading for a sixth straight week of

gains. The equities gauge, however, slipped 0.8%

and was poised to mark its sixth consecutive session of losses,

its longest such streak since late April.

Most assets in the resource-laden region were on track to

log weekly gains helped by firmer commodity prices that improved

risk sentiment.

Among currencies, the Mexican peso traded 0.5%

higher, while its stocks gained 0.6%, led by a 1.6%

advance in Grupo Mexico, tracking higher copper

prices.

Data showed annual inflation in Mexico slowed in July to its

lowest level in more than six years, a day after the central

bank kept rates unchanged and pushed back its timeline for

inflation to return to target levels.

"Softer food prices, weak domestic demand, restrictive

financial conditions and the lagged effects of the MXN's

appreciation earlier this year continue to support lower

headline inflation," said Andres Abadia, chief LatAm economist

at Pantheon Macroeconomics.

In Chile, annual inflation also eased in July, while copper

export revenue jumped 22.7% year-on-year. The equities benchmark

declined 0.2% after hitting an over three-month high

in the previous session, and the peso gained 0.4%.

Brazilian stocks fell most among Latin American

peers, down 1.9%, with a 3% loss in state-run oil firm Petrobras

despite reporting strong second-quarter results,

dragging the index lower. The real strengthened 0.5%.

In Colombia, right-wing lawyer Abelardo De La Espriella will

be sworn in as the country's new president later in the day,

firming a broader rightward shift in the region. De La Espriella

won the election in June on promises to crack down on armed

groups and revive the energy sector.

The peso dipped 0.1%. Colombian stock markets were

closed for a holiday.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

Equities Latest Daily %

change

MSCI Emerging Markets 1660.93 0.15

MSCI LatAm 3041.61 -0.76

Brazil Bovespa 172202.12 -1.91

Mexico IPC 66783.35 0.58

Chile IPSA 11250.79 -0.22

Argentina Merval 3057904.7 -1.381

8

Colombia COLCAP - -

Currencies Latest Daily %

change

Brazil real 5.0846 0.5

Mexico peso 17.1263 0.46

Chile peso 911.74 0.39

Colombia peso 3152.66 -0.08

Peru sol 3.3825 -0.15

Argentina peso (interbank) 1498.5 0.10

Argentina peso (parallel) 1505 1.66