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Chile to cut interest rate by 75 bps in April- poll

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Mexican peso touches highest since 2015

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Brazil's Haddad foresees 'quite expressive' Feb payroll

data

(Updated at 4pm ET/2000 GMT)

By Ankika Biswas

March 27 (Reuters) - Mexico's peso touched an eight-year

high against the dollar and most Latin American stock indexes

turned higher on Wednesday, although trading was fairly muted on

the last day of the trading week for most regional markets.

Mexico's peso jumped as high as 16.5130 to the

dollar, its strongest since December 2015. It was last up 0.5%

at 16.5597.

The peso's rise boosted MSCI's basket of Latin American

currencies 0.4%. A gauge of regional stocks

jumped 1%, set for its best session in one week.

Thin trading volumes are expected for the rest of the

holiday-shortened week for most markets. Markets in Peru,

Mexico, Colombia and Argentina will be closed from Thursday,

while Brazil will be shut on Friday. Argentine markets will

remain inactive for four days.

"Markets appear to have an eye on month-end and the long

weekend already," said Shaun Osborne, chief FX strategist at

Scotiabank.

Also boosting the peso, Mexico's economy is seen growing up

to 3.5% this year and then expanding 2% to 3% in 2025 while

inflation is expected to come down, a draft budget from the

country's finance ministry showed.

Further data showed Mexico's seasonally adjusted

unemployment rate was 2.6% in February, while the headline

unadjusted rate was 2.5%.

Peru's sol lost 0.6% against the dollar as copper

prices retreated to a two-week low.

Colombia's peso lost 0.3% while Brazil's real

was about flat.

Brazil's economy created a better-than-expected net 306,111

formal jobs in February, according to Labor Ministry figures.

Top crude oil exporter Colombia's peso shed 0.2% as

oil prices fell for a second day.

Elsewhere, South Africa kept its interest rate unchanged at

8.25%, saying on balance risks to the inflation outlook were

skewed to the upside.

"The continued hawkish rhetoric from Governor Kganyago

supports our view that rate cuts will only happen after May's

election," Capital Economics' deputy chief emerging markets

economist Jason Tuvey said.

"Even then, a period of political uncertainty and a build-up

of fiscal risks after the vote could prompt the SARB to not cut

rates at all this year."

A central bank poll showed Chile is likely to cut its

benchmark rate by 75 basis points to 6.50% at its April meeting,

smaller than a previously anticipated 100-bps reduction.

Stock markets in Brazil, Mexico and Colombia

rose between 0.3% and 1.1%.

Shares of Colombia's Ecopetrol jumped 4%.

Brazilian meat-packer JBS SA shares lost over 2%

after reporting results below analysts expectations, driven by

difficulties at its U.S. beef division.

Key Latin American stock indexes and currencies at 2000 GMT:

Latest Daily %

change

MSCI Emerging Markets 1036.74 -0.32

MSCI LatAm 2539.59 1.07

Brazil Bovespa 127729.60 0.68

Mexico IPC 57400.32 0.33

Chile IPSA 6597.94 1.19

Argentina MerVal 1213212.02 -0.119

Colombia COLCAP 1332.98 1.13

Currencies Latest Daily %

change

Brazil real 4.9790 0.02

Mexico peso 16.5570 0.47

Chile peso 979.5 0.04

Colombia peso 3857.5 -0.31

Peru sol 3.7157 -0.59

Argentina peso 857.5000 -0.06

(interbank)

Argentina peso 990 2.53

(parallel)