(Updated at 10:30 a.m. ET/ 1430 GMT)

*

Chile's consumer prices up 0.3% in August

*

Latam stocks index down 0.6%, FX adds 0.4%

By Shashwat Chauhan

Sept 6 (Reuters) - Latin American currencies were mixed

in choppy trading on Friday, as the latest U.S. jobs report only

muddied the waters on expectations around the size of potential

rate cuts by the Federal Reserve this month.

The week's big-ticket event, the U.S. jobs report, showed

employment increased less than expected in August, but a drop in

the jobless rate to 4.2% suggested an orderly labor market

slowdown continued.

"Investors remain divided on how quickly the Fed should

lower rates and the mixed employment data today did not augment

the argument for either side," Charlie Ripley, senior investment

strategist for Allianz Investment Management, said.

"Which is why the odds of a 50 basis point cut at the

September meeting looks like a coin toss for now."

Traders currently see a 61% chance of the Fed opting for a

25-basis-point cut when it meets later this month, according to

the CME FedWatch Tool.

Brazil's real held firm at 5.5702 per dollar after

rising as much 0.8% during the session, while Chile's peso

added 0.3%.

Consumer prices in Chile rose slightly more than expected in

August, statistics agency INE said.

Colombia's peso added 0.3% against the greenback

ahead of the release of domestic consumer prices data.

Mexico's peso dropped 0.7% in volatile trading, on

track to clock its third successive weekly loss.

Mexico's currency came under pressure this week after the

lower house of Congress approved an overhaul of the country's

judiciary early on Wednesday, which will be debated in the

Senate next week.

MSCI's index for Latin American currencies

gained 0.4%, heading for mild weekly gains.

A gauge for stocks slipped 0.6%, set for its

third straight weekly loss.

Brazil's benchmark slipped 0.4% early on, while the

Mexican index edged 0.1% lower.

Emerging market equities saw inflows for the 14th straight

week in the week to Wednesday, while debt saw outflows for the

sixth straight week, according to a report by Bank of America.

HIGHLIGHTS

** Colombia reaches deal with truckers to suspend road

blockades

** Brazil's Eneva advances with purchase of power assets,

share issue

Key Latin American stock indexes and currencies:

Equities Latest Daily % change

MSCI Emerging Markets 1074.98 -0.1

MSCI LatAm 2212.66 -0.56

Brazil Bovespa 135925.1 -0.42

Mexico IPC 51607.13 -0.11

Chile IPSA 6294.93 -1.05

Argentina Merval 1763141.4 -0.132

1

Colombia COLCAP 1338.34 -0.25

Currencies Latest Daily % change

Brazil real 5.5702 0.07

Mexico peso 20.0052 -0.73

Chile peso 939.3 0.32

Colombia peso 4142 0.33

Peru sol 3.791 -0.41

Argentina peso (interbank) 954 0

Argentina peso (parallel) 1225 3.265306122