* Latam stocks and FX headed for weekly losses
* US jobs data boosts dollar
* Peruvian sol, stocks slide as leftist Sanchez gains
traction
(Updates with afternoon levels)
By Avinash P and Ragini Mathur
June 5 (Reuters) - Peruvian stocks led losses across
Latin American markets on Friday as a tightening presidential
race unsettled investors already grappling with a stronger
dollar, robust U.S. jobs data and geopolitical uncertainty.
The Lima stock exchange's benchmark index
tumbled 3.4%, its worst one-day performance in about two months,
while the Peruvian sol slid 1.5% against the U.S. dollar,
marking its steepest drop in more than three months.
An Ipsos poll showed leftist Peru candidate Roberto Sanchez
gaining momentum ahead of Sunday's run-off against conservative
Keiko Fujimori, the daughter of former President Alberto
Fujimori.
Sanchez, who has recently softened his campaign rhetoric,
drew 43.8% support, narrowly ahead of Fujimori's 43.2%, leaving
the race in a statistical dead heat.
The close contest has heightened investor anxiety over
Peru's policy outlook, with markets weighing the potential
impact on business confidence, foreign investment and economic
management.
"The fall in Peruvian assets suggests deeper investor
concern over a never-ending change of the guard that looks like
an imbalance in administrative power," said Juan Perez, director
of trading at Monex.
"Fujimori carries quite a legacy, but she could be seen as
positive for the sol and other assets since she would fit in
with Trump and a current trend of turning center-right across
LatAm."
With pressure extending across the region, MSCI's Latin
American currencies index also fell 2.3%, while
its regional stocks gauge lost 1.7%. Both were
on track for weekly declines.
A stronger U.S. dollar weighed on emerging market
currencies after data showed U.S. employers added far more jobs
than expected in May, reinforcing expectations that the Federal
Reserve could raise interest rates later this year.
Sentiment was also dented by stalled Middle East peace
efforts. Iran reaffirmed support for its Lebanese ally Hezbollah
and demanded that Israel withdraw from southern Lebanon,
underscoring the obstacles to an interim deal aimed at easing
the broader U.S.-Iran conflict.
Brazil's real fell 1.5% to its weakest level in
nearly two months, while the Bovespa dropped 0.7%.
Investors were also assessing the U.S. designating Brazil's
largest criminal groups as Foreign Terrorist Organizations,
effective Friday, that could increase risks and costs for
companies operating in sectors where gangs have penetrated the
formal economy.
Chile's peso weakened 2.3% as copper prices slipped.
In Colombia, the COLCAP equities index fell 0.5%,
while the peso dropped 1%, though it remained on track
for a third straight week of gains. The currency could extend
its advance if opposition candidate Abelardo de la Espriella
wins the June 21 presidential run-off, according to a Reuters
poll.
Key Latin American stock indexes and currencies:
Stock indexes
Latest Daily % change
MSCI Emerging Markets 1711.47 -2.71
MSCI LatAm 2884.51 -2.3
Brazil Bovespa 169173.78 -0.68
Mexico IPC 66181.82 -1.8
Chile IPSA 10328.75 0.24
Argentina MerVal 3109464.12 -2.05
Colombia COLCAP 2217.26 -0.49
Currencies Latest Daily % change
Brazil real 5.1375 -1.45
Mexico peso 17.4717 -1.14
Chile peso 915 -2.27
Colombia peso 3599.64 -1.03
Peru sol 3.4505 -1.49
Argentina peso 1,441.5 -0.28
(interbank)
Argentina peso (parallel) 1,410.0 1.74