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LatAm stocks down 0.39%, FX down 0.55%

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Brazil's economy up 0.4% in April-June period

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Argentina intervenes in FX market ahead of elections

(Updates with afternoon trading)

By Pranav Kashyap

Sept 2 (Reuters) -

Most Latin American currencies fell on Tuesday against a

stronger dollar amid renewed global bond-market pressure, as

investors digested regional data and awaited this week's key

U.S. jobs report.

The MSCI index for Latin American currencies

declined 0.55%, while a similar gauge for stocks

slipped 0.39%.

The dollar index jumped 0.73% due to a broader

rise in bond yields, driven by growing worries about fiscal

pressures worldwide.

The greenback's next moves will hinge on Friday's U.S.

non-farm payrolls report, which could shift market expectations

for the Federal Reserve's September policy decision.

In Latam, the Brazilian real fell 0.57%, while the

country's main index dropped about 0.7%, as

second-quarter GDP showed a steep slowdown, though it

outperformed market expectations.

Although inflation has eased, it remains above the central

bank's target range, prompting caution.

"Brazil's economy is like driving with your foot on the

accelerator, your foot on the brake at the same time," said

David Nicholls, emerging markets portfolio manager at East

Capital.

However, the economic slowdown, coupled with an improving

inflation outlook, provides Brazil's central bank with scope to

begin lowering interest rates after maintaining them at a near

two-decade high in July.

"You're not seeing the outflows, but you're not seeing

inflows as well. When we start to see rates come down, you will

start to see more of local investors coming in," Nicholls

added.

Argentine assets drew attention ahead of elections in Buenos

Aires on September 7 and midterm polls in October.

The Argentine peso,, which hit a record

low in the previous session, rose 1.45% after the Treasury said

it would intervene in the foreign exchange market to boost

liquidity and stabilize the currency amid mounting uncertainty

ahead of the midterm elections.

Stocks in Buenos Aires climbed 1.32%.

The Mexican peso slipped 0.4%, while the main stock

index surged 1.5% to reach an all-time high, driven by

gains in lender Banorte and the Mexican unit of

retailer Walmart.

Chile's peso fell 0.7% to a near one-month low,

while its benchmark index edged up 0.3%.

Colombian stocks declined 0.8%, while the

country's currency gained 0.2%, hitting a new record

peak.

Among individual stocks, Brazilian state-run lender

Banco do Brasil dropped 2.7% as the final phase of

former President Jair Bolsonaro's criminal trial

commenced

.

Meanwhile, stocks in Turkey were also in focus, falling

after a court ousted Istanbul's provincial opposition chief.

Turkish stocks fell 3.57%, their steepest daily fall in

over five months, as the lira touched a record low.

The ouster represents the latest judicial challenge to

critics of President Tayyip Erdogan, amid an unprecedented

crackdown that has seen 15 opposition mayors, including

Istanbul's Ekrem Imamoglu, detained.

Key Latin American stock indexes and currencies:

Stock indexes

Latest Daily % change

MSCI Emerging Markets 1264.18 -0.19

MSCI LatAm 2389.44 -0.39

Brazil Bovespa 140349.03 -0.66

Mexico IPC 59752.86 1.51

Chile IPSA 8938.44 0.18

Argentina MerVal 1965418.31 1.32

Colombia COLCAP 1826.49 -0.89

Currencies Latest Daily % change

Brazil real 5.4708 -0.57

Mexico peso 18.7213 -0.44

Chile peso 974.38 -0.71

Colombia peso 4001 0.35

Peru sol 3.5372 -0.07

Argentina peso (interbank) 1,358.0 1.45

Argentina peso (parallel) 1,340.0 2.19