EMERGING MARKETS-LatAm stocks dip as investors weigh geopolitical tensions, US data

By Ragini Mathur and Twesha Dikshit

Jan 7 (Reuters) - Latin American currencies and stocks dipped on Wednesday after U.S. President Donald Trump's plan to sell Venezuelan crude reserves ignited concerns about long-term geopolitical instability, while investors also focused on U.S. economic data.

Trump said on Tuesday that Venezuela would be "turning over" up to 50 million barrels of oil to be sold at market prices - a move that would increase supplies to the world's largest oil consumer, causing oil prices to extend their decline.

Markets in Latin America had largely remained unfazed earlier this week, trading higher despite the U.S. capture of Venezuela's president, which created political turbulence in the region, before retreating on Wednesday.

Trump has also hinted at military actions against Colombia and Mexico, as well as using U.S. forces to take Greenland.

MSCI's Latin American equities index .MILA00000PUS fell 1.5%, while the corresponding currency gauge .MILA00000CUS ticked about 0.1% lower.

"Markets are experiencing a pause in risk-taking that reflects positioning and policy uncertainty rather than a wholesale shift away from growth," said Bob Savage, head of markets macro strategy at BNY.

Chile's main stock index .SPIPSA fell as much as 0.8%.

The world's largest copper-producing country posted a trade surplus of $3.594 billion in December, beating the $2.458 billion expected by economists polled by Reuters.

Brazil's .BVSP and Mexico's .MXX benchmarks declined 1.1% and 1%, respectively. Colombia's .COLCAP share index also retreated 0.8%.

"Technology optimism remains the core driver, but macro data, geopolitics - especially around energy - and USD-led FX dynamics are key swing factors for near-term market momentum," Savage said.

The U.S. dollar remained steady as markets assessed recent U.S. labor market data, which served as a prelude to this week's key employment report on Friday.

Friday's nonfarm payrolls data will offer insights on Federal Reserve monetary policy, with markets currently pricing in two more rate cuts this year.

Currencies in LatAm were mixed, with Brazil's real BRL= and the Colombian peso COP= rising 0.5% and 0.9% respectively against the U.S. dollar.

The Peruvian sol PEN= and the Mexican peso MXN= were little changed.

Mexican headline inflation likely held steady in December, while core inflation likely fell but remained above the official target, a Reuters poll showed on Tuesday. The country will release inflation figures on Thursday.

Key Latin American stock indexes and currencies at 15:18: