EMERGING MARKETS-Latam FX, stocks rise with US tariffs, new Fed appointment on radar

By Sukriti Gupta and Purvi Agarwal

Aug 6 (Reuters) - Most Latin American currencies nudged higher and regional stocks advanced on Wednesday as investors monitored more U.S. tariff announcements and awaited more clarity on the pick for a Federal Reserve governor.

In his latest salvo, U.S. President Donald Trump imposed an additional 25% tariff on India over its purchase of Russian oil. India, South Africa and Brazil are among the BRICS group members that face some of the highest U.S. tariffs.

The U.S.-listed iShares India ETF INDA.N dipped to a three-month low after the news, while the 1-month USD/INR futures contract fell 0.2%.

Trump is set to name a new Fed governor this week to replace Adriana Kugler, who on Friday unexpectedly announced her departure. Analysts expect a more dovish successor on monetary policy following Friday's bleak jobs report, with a September interest rate cut all but priced in.

The dollar index =USD fell 0.3%, lifting Latin American currencies including those of Mexico MXN= and Argentina ARS=RASL. Rebounding oil prices also boosted Colombia's peso COP= 1.1%.

Brazil's real BRL= was up 0.5%. Finance Minister Fernando Haddad said he will hold a call next week with U.S. Treasury Secretary Scott Bessent as the country seeks to negotiate trade after Trump imposed a 50% tariff on several goods from Brazil.

On the flip side, Chile's peso CLP= fell 0.7%. The central bank said on Tuesday it would kick off a three-year program to accumulate $18.5 billion in international reserves, aiming to increase its own holdings and reduce reliance on foreign credit lines.

MSCI's index tracking Latam currencies .MILA00000CUS was up 0.7%, set for its fifth consecutive session of gains. The index has done well this year, capitalizing on the dollar weakness.

"For the likes of Brazil and to a lesser extent Mexico, the prospect of high, even punitive tariffs has not damaged flow interest and spot performance in currencies," said analysts at BNY.

"But, we remain cautious on currency performance up ahead, mostly due to terms of trade developments for commodity producers."

MSCI's index tracking Latam stocks .MILA00000PUS was up 1.3%, on course for a third session of gains.

Heavyweight Brazilian equities .BVSP gained 1.2%. Mexican .MXX stocks rose 0.6%, while shares in Argentina .MERV were up 1.5%.

International bonds in Ukraine rose broadly as markets awaited the outcome of a meeting between Russian officials and U.S. envoy Steve Whitkoff.

Reports said U.S. was weighing new sanctions on Moscow's covert fleet of oil tankers and related entities while Trump will speak to his Ukrainian counterpart on Wednesday.

Elsewhere, concerns over Zambia's weakening ability to deal with its debt burden pushed the country's international bonds sharply lower after the International Monetary Fund published its latest assessment of the southern African nation.

Markets in Peru were closed for a public holiday.

Key Latin American stock indexes and currencies: