(Updated at 1443 GMT)

*

Brazil services activity jumps to record high in July

*

Colombian govt proposes new fiscal reform

*

Vale bumps up 2024 iron ore production forecast

*

Latam stocks off 0.2%, FX slips 0.1%

By Johann M Cherian

Sept 11 (Reuters) - Mexico's peso jumped 1% among

currencies in resource-rich Latin America on Wednesday, though

the currency was not far from a low seen nearly two-years ago,

after lawmakers finalized a judicial overhaul.

Mexico's peso traded at 19.92 per dollar and was on

track for its biggest one-day jump in nearly three weeks, with a

bounce in oil prices aiding some gains.

The country's Senate approved a sweeping reform where judges

would be elected by popular vote, a radical transformation that

has been criticized for putting the country's economy and rule

of law at risk.

The peso has logged losses of more than 14% since June - the

month when president-elect Claudia Sheinbaum voiced strong

support for the reforms immediately after securing a landslide

electoral victory.

Thierry Wizman, global FX & sates strategist at Macquarie,

said that traders are worried about not just lowered foreign

investment into Mexico, but damaged commercial relations between

the U.S. and Canada that threatens the dissolution of

U.S.-Mexico-Canada free-trade agreement.

He said the day's gains will be a brief pop and the

currency's losses sustained thus far will be permanent.

MSCI's gauge for Latin American currencies

was 0.1% lower against the U.S. dollar as investors assessed a

U.S. inflation report ahead of the Federal Reserve's next

monetary policy meeting.

Odds favouring Democrat Kamala Harris over Republican Donald

Trump following a fierce U.S. presidential debate ahead of

November elections also aided some optimism in the region.

The former U.S. president's policies on trade, immigration

and security are seen as a negative for Latin American economies

that are mostly led by left-leaning governments.

Brazil's real edged up 0.1% after data showed service

sector activity jumped to a record high in July, cementing

expectations that the central bank will hike borrowing costs by

25 basis points at its meeting next week.

In a setback for the government's efforts to meet this

year's fiscal target, the domestic central bank said that

forgotten funds held by financial institutions could not be

classified as primary revenue.

Colombia's peso slipped 0.2% - its fourth day of

declines. The government proposed a new fiscal reform to raise

an additional $2.84 billion through higher taxes and other

measures to finance part of next year's budget.

Concerns around fiscal instability have weighed on the

currency which is trading near 11-month lows.

Currencies of copper producers Chile and Peru

appreciated 0.4% and 0.7%, tracking a rebound in prices of the

red metal.

On the equities front, MSCI's index tracking regional

bourses slipped 0.2%, with Mexico's main stocks

index flat.

Brazil's Bovespa edged up 0.1%, with Vale

up 2.2% after the mining group raised its annual iron ore

production forecast.

Argentina's MerVal index rose 1.2% ahead of the

release of the country's inflation report for August due later

in the day.

Key Latin American stock indexes and currencies:

Equities Latest Daily %

change

MSCI Emerging Markets 1086.69 -0.57

MSCI LatAm 2195.32 -0.20

Brazil Bovespa 127252.79 -0.01

Mexico IPC 53028.86 -0.04

Chile IPSA 6487.39 1.15

Argentina Merval 1438048.3 1.564

6

Colombia COLCAP 1340.63 -0.24

Currencies Latest Daily %

change

Brazil real 5.6342 0.10

Mexico peso 18.678 0.89

Chile peso 942.95 0.4

Colombia peso 4060.06 -0.27

Peru sol 3.7192 -0.1

Argentina peso 931.5 2.8448738

(interbank) 59

Argentina peso (parallel) 1340 -4.477611

94