*

Latam FX, stocks up 0.4% each

*

Brazil's government to back bill cutting tax breaks by

10%,

sources say

*

Chile's annual inflation remains above central bank target

*

Russia's central bank cuts rate in surprise move, rouble

slumps

(Updates to mid-session prices)

By Nikhil Sharma and Pranav Kashyap

June 6 (Reuters) - Latin American assets were poised to

cap off a stellar week on Friday after strong U.S. jobs data

eased concerns about the world's largest economy despite brewing

global trade tensions.

The MSCI's index for Latin American currencies

soared more than 2% for the week, its best

weekly performance in over a month.

U.S. President Donald Trump said three of his cabinet

officials will meet with representatives of China in London on

June 9 to discuss a trade deal.

In Russia, the central bank executed a surprising interest

rate cut, the first since September 2022, citing a cooling

economy and decelerating inflation. The move sent the rouble

down 2.1% against the dollar.

The White House's increased tariffs on steel and aluminium

imports took effect on Wednesday, in a move that will affect

Latin American economies such as Mexico, which are intricately

tied to U.S. supply chains.

Mexico's peso climbed 1.6% for the week and was

poised for its best weekly showing in nearly two months.

Dollar weakness has opened the floodgates for "carry

trades", channelling heavy flows into higher-yielding emerging

market currencies such as the Brazilian real.

The greenback remains in a precarious spot and continues to

look vulnerable to bad news on the fiscal and trade policy

fronts, said James Reilly, senior economist at Capital

Economics.

Brazil's real surged nearly 3% this week, charting a

course for its strongest weekly performance in more than 10

months.

This run solidifies its year-to-date gains at roughly 10% -

positioning it as the top performer among its Latam peers.

"If the U.S. is going to be in a situation where there's not

going to be a lot of reliability going forward, then you're

going to have to go find yield where you can," said Juan Perez,

director of trading at Monex.

Investors found some relief in a report indicating Brazil's

government is expected to back a bill proposing a 10% cut to

federal tax breaks, which could allow it to scrap last month's

controversial tax hike on financial transactions.

The broader gauge of Latin American equities

notched a 1.5% gain this week.

While Chile's annual inflation in May cooled to a six-month

low, it remained above target, keeping expectations that the

central bank will keep interest rates on hold this month. The

peso slipped 0.5% on the day.

Peru's stock index was primed for its best week

in more than eight months, largely propelled by surging copper

prices.

Equities Latest Daily %

change

MSCI Emerging Markets 1182.52 -0.01

MSCI LatAm 2256.69 0.44

Brazil Bovespa 135690.05 -0.4

Mexico IPC 57968.31 0.33

Argentina Merval 2174984.2 2.393

2

Chile IPSA 8146.22 0.01

Colombia COLCAP 1651.51 -0.27

Currencies Latest Daily %

change

Brazil real 5.5636 0.45

Mexico peso 19.1028 0.24

Chile peso 934.19 -0.48

Colombia peso 4112.71 0.03

Peru sol 3.65 -0.76

Argentina peso (interbank) 1184.5 0.55

Argentina peso (parallel) 1145 2.62