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EMERGING MARKETS-Brazil's real slips against firmer dollar, Wall St slide hits Latam stocks

    * Wall St sinks as tech sell-off resumes
    * Latam FX index set for second straight weekly gain
    * Brazil stock index tracks first weekly decline in three

 (Updates prices throughout, adds comments)
    By Sagarika Jaisinghani and Shreyashi Sanyal
    Sept 4 (Reuters) - The Brazilian real retreated on Friday
against a dollar that firmed after data showed jobs growth
slowed in the United States, while a tumble on Wall Street for a
second straight day hit Latin American equities. 
    The real rose as much as 0.9% to 5.2460 before
falling 0.2%. The currency is hovering at one-month highs as
investors bet on a steady economic recovery after a slate of
upbeat data this week.  
    Figures on Friday showed new auto sales rose 5.1%, the
latest in a series of data to signal a pickup in business
activity.
    Brazil's government on Thursday presented to congress a
constitutional reform bill aimed at simplifying and reducing the
cost of its public sector, which gives the president sweeping
powers to eliminate public sector jobs and bodies without
congressional approval.
    "Given the heavy public debt burden, this degree of largesse
is unlikely to continue," said William Jackson, chief emerging
markets economist at Capital Economics. 
    "Indeed, the 2021 budget plan presented by the government on
Monday outlined the fiscal straitjacket."
    The U.S. dollar strengthened, knocking down a gauge of Latin
American currencies, after the U.S. Labor
Department reported job growth slowed further in August with
financial assistance from the government virtually depleted.

    The Mexican peso firmed 0.6% as a consumer confidence
index rose for the third month in a row in August. The currency
has dropped 12% in 2020 and is set for its worst year since 2016
as the COVID-19 pandemic battered Latin America's no. 2 economy,
forcing factories to shut and hitting trade.
    A Reuters poll found FX strategists think most major
emerging market currencies will hold gains made since March's
financial market crash into next year. In twelve months, they
expect South Africa's rand will have gained about 2.0%,
the Brazilian real 7.0% and the Russian rouble 8.0%.

    Elsewhere in Latin America, the Chilean peso firmed
0.3%, while the Colombian peso eased 0.7%.
    The Brazilian stock index shed 0.3% and was set for
its first weekly decline in three. 
    On Wall Street, the Nasdaq fell as much as 5% for a
second straight day as investors sold off heavyweight tech
stocks that have been largely responsible for a stunning rally
in U.S. equities since April.
    
    Key Latin American stock indexes and currencies:     
    
          Stock indexes                   Latest   Daily %
                                                   change
 MSCI Emerging Markets                    1098.43    -0.94
 MSCI LatAm                               2002.95     0.05
 Brazil Bovespa                         100442.03    -0.28
 Mexico IPC                              36232.76    -0.54
 Chile IPSA                               3820.26    -0.67
 Argentina MerVal                        44357.46   -0.988
 Colombia COLCAP                          1246.74    -0.01
                                                          
              Currencies                  Latest   Daily %
                                                   change
 Brazil real                               5.2994    -0.19
 Mexico peso                              21.5190     0.66
 Chile peso                                   773     0.25
 Colombia peso                               3714    -0.69
 Peru sol                                  3.5257     0.68
 Argentina peso (interbank)               74.4300    -0.07
                                                   
 Argentina peso (parallel)                    129     3.88
                                                   
 
 

 (Reporting by Shreyashi Sanyal and Sagarika Jaisinghani in
Bengaluru
Editing by Chris Reese and Sonya Hepinstall)
  
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