EMERGING MARKETS-LatAm FX, stocks eye positive end to week of tech, commodity rout

By Purvi Agarwal

Feb 6 (Reuters) - Most Latin American currencies strengthened against the dollar on Friday, while stocks recovered from two sessions of declines, putting the broader indexes on track to close a volatile week with gains.

MSCI's index tracking stocks in Latin America .MILA00000OUS and the currencies' equivalent .MILA00000CUS were on track for marginal weekly gains, which would mark their seventh weekly increase in a row.

EM equities in particular were whiplashed this week as wild swings in precious metal prices and a selloff in tech stocks impacted tech-exposed Asian EMs and resource-heavy markets in Latin America and South Africa.

Still, as investors moved out of the U.S. in a bid to diversify their holdings, emerging markets excluding China saw $12 billion in inflows, according to data from BofA Global Research.

On the day, heavyweight stocks in Brazil .BVSP were flat, with gains countered by a 4.2% decline in Bradesco BBDC3A.SA after the lender said it expects slower growth in its credit portfolio this year.

Brazil's real BRL= appreciated 0.8%. Brazil's Finance Ministry projected 2.3% growth for the economy in 2026, matching its expected pace for 2025, while inflation was forecast to ease but remain above target.

The currency was on track for its sixth week of gains.

The dollar index =USD weakened 0.3% on the day, lifting currencies, a day after data showed U.S. jobless claims increased last week and job openings fell to an over-five-year low in December.

"Some temporary calm seems to have returned to financial markets, where precious metals are modestly higher... and bitcoin has found some buyers," said Chris Turner, global head of markets research at ING.

"Supporting markets may be the view that the Federal Reserve is ready to run to the rescue again...Helping that adjustment to Fed pricing was some surprisingly soft U.S. labour market data yesterday."

Stocks in Mexico .MXX and Colombia .COLCAP gained 1% and 0.1%, while their currencies were 1.1% and 0.2% higher, respectively.

Colombia's stocks are set for their biggest weekly drop since March.

Chile's peso CLP= climbed 0.9% but local stocks .SPIPSA fell 0.5%. Data showed Chile's 12-month inflation fell in January to its lowest level in more than five years.

Argentina will give preferential market access to U.S. goods exports as part of a new trade and investment agreement that prohibits barriers to digital trade and enhances cooperation on economic and national security issues, the U.S. Trade Representative's office said on Thursday.

Argentina's peso ARS=RASL appreciated 0.5% against the dollar.

Elsewhere in EMs, Russia and Ukraine concluded the second day of talks, with the two sides conducting a major prisoner swap and agreeing to resume negotiations soon, the Kremlin said.

Ukraine's government bonds were stable, after having hit their highest levels since their restructuring in 2024, earlier this week.

Key Latin American stock indexes and currencies: