*

Latam stocks down 0.27%, FX up 0.13%

*

Industrial production in Brazil falls for 4th consecutive

month

*

US July job openings below estimates

(Updates with afternoon trading)

By Pranav Kashyap and Nikhil Sharma

Sept 3 (Reuters) -

Latin American currencies held steady on Wednesday as

investors assessed a spate of regional indicators alongside

fresh U.S. jobs data, which further reinforced expectations of

an interest rate cut this month.

The MSCI index for Latin American currencies

rose 0.13%, while the dollar index dipped after economic

data showed weakening U.S. labor demand.

A Labor Department report showed U.S. job openings fell

more than expected in July, and hiring was moderate. Investors

now await Friday's nonfarm payroll numbers, which could further

guide the policy easing expectations.

"The story of today is you have somewhat established

that the Federal Reserve is going to be acting on September 17th

and they're going to be convinced to go ahead and slash interest

rates by 25 basis points," said Juan Perez, director of trading

at Monex.

"So that's not a shock and that's why you're seeing the

market trading within these tight ranges."

In Latin America, Brazil's real clawed back from

a two-week low, gaining for the first time in four sessions.

A Reuters poll

showed

Brazil's real currency is forecast to fall moderately in

the coming months, when it should remain supported by U.S.

dollar weakness and wide interest rate spreads.

Fresh data showed the pace of contraction in Brazil's

services sector

eased

in August, while another indicator

showed the country's fourth straight month of no growth in

industrial output.

The country's interest rates, parked near a 20-year

high, have started to bite growth amid the central bank's fight

against inflation.

Latin America's largest economy

raised

$3.25 billion in a two-part sovereign bond sale on Tuesday,

to ease trading of Brazil's dollar bonds abroad, set benchmarks

for companies and pre-fund upcoming foreign debt.

Meanwhile, Sao Paulo stocks fell 0.49% on

Wednesday, pressured by lower energy stocks.

A broader gauge for Latin American stocks

fell 0.26%, on pace for its fourth straight session of losses.

Argentina's peso remained steady ahead of

elections in Buenos Aires on September 7 and midterm polls in

October. The Treasury said on Tuesday it will move to support

liquidity with interventions, aiming to stabilize the currency.

The local benchmark index dropped 1.72%.

Chilean stocks rose 0.58% to a record high, while

the country's peso was up 0.93%, ahead of inflation data

due on Friday.

The Mexican peso eased 0.09%, while the country's

stocks moved 0.27% lower. Data showed the consumer

confidence index was 46.7 in August.

In Central and Eastern Europe, Poland's central bank lowered

interest rates by 25 basis points in a widely expected move. The

benchmark WIG20 index gained 0.44% while the zloty

remained stable.

Turkish stocks fell 1.3%, taking its two-day drop

to nearly 5%, as political risk flared with the ouster of the

CHP's Istanbul head.

Key Latin American stock indexes and currencies:

Stock indexes

Latest Daily % change

MSCI Emerging Markets 1266.63 0.09

MSCI LatAm 2388.15 -0.26

Brazil Bovespa 139641.64 -0.49

Mexico IPC 59585.68 -0.27

Chile IPSA 9043.24 0.58

Argentina MerVal 1941677.14 -1.72

Colombia COLCAP 1832.13 0.16

Currencies Latest Daily % change

Brazil real 5.4573 0.13

Mexico peso 18.7176 -0.09

Chile peso 964.22 0.93

Colombia peso 4001.5 -0.05

Peru sol 3.53 0.22

Argentina peso (interbank) 1,361.0 0.00

Argentina peso (parallel) 1,325.0 2.57