EMERGING MARKETS-Latin American currencies, stocks subdued as focus turns to Jackson Hole meeting

By Purvi Agarwal

Aug 21 (Reuters) - Latin American currencies and stocks were mixed on Thursday as investors awaited any policy clues from the Jackson Hole economic symposium amid concerns over the Federal Reserve's independence.

The annual gathering of global central bankers in Wyoming starts on Thursday, with Fed Chair Jerome Powell set to speak on Friday. Analysts expect him to keep his options open regarding an interest rate cut at the U.S. central bank's September 16-17 meeting.

MSCI's indexes tracking Latin American currencies .MILA00000CUS and equities .MILA00000PUS each gained 0.1%.

Peru's sol PEN= rose 0.6% in low-volume trading, touching its highest level in more than five years and marking its fifth consecutive session of gains.

Most other currencies were subdued, but the Colombian peso COP= fell 0.6%.

"The real and some of the higher-carry currencies started to recover some losses yesterday, but the rallies fizzled ... not much new money is coming into these trades at this stage and the pairs will trade on idiosyncratic stories for now," said Brad Bechtel, global head of FX at Jefferies.

Latin American assets have made gains this month on prospects of U.S. monetary policy easing, as markets price in a 25-basis-point rate cut next month, after bleak jobs data earlier in August raised concerns over U.S. economic health.

The dollar index =USD was 0.3% higher on Thursday, after data showed an uptick in U.S. business activity in August, led by a resurgent manufacturing sector.

Worries about the Fed's independence, however, were rekindled after U.S. President Donald Trump demanded on Wednesday that Fed Governor Lisa Cook resign over allegations tied to mortgages on two properties.

Earlier this month, Trump picked Council of Economic Advisers Chair Stephen Miran to replace former Fed Governor Adriana Kugler, who resigned her seat early.

Regional equities were broadly higher, with those in Colombia .COLCAP and Chile .SPIPSA gaining 0.2% each, while Argentina's main equities index .MERV was up 0.5%.

Brazil's stocks .BVSP were an outlier, falling 0.3%.

Data showed retail sales in Mexico dropped 0.4% in June from May. Local stocks .MXX were 0.2% higher.

McCormick MKC.N raised its stake in a joint venture with Mexican food processing company Grupo Herdez HERDEZ.MX, which jumped 26%.

The minutes from the August 8 meeting of Romania's central bank showed its board unanimously voted to hold interest rates steady.

Ukraine's dollar bonds fell more than 1 cent on the dollar each, as markets awaited more tangible progress on a Russia-Ukraine peace deal with initial optimism fizzling out.

Kenya's dollar bonds were higher as the country was in talks with China to convert a dollar-denominated railway loan into Chinese yuan.

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