EMERGING MARKETS-LatAm FX, stocks touch record highs as markets digest U.S. data

By Pranav Kashyap and Ragini Mathur

Feb 11 (Reuters) - Most Latin American currencies and stocks were broadly higher on Wednesday as investors digested a hot U.S. jobs report and pushed back expectations for a Federal Reserve rate cut.

The MSCI index for Latin American equities .MILA00000PUS jumped 1.7%, hitting a fresh record high, while a similar currency index .MILA00000CUS rose 0.3% to reach an all-time peak.

The U.S. dollar =USD, which had strengthened initially after nonfarm payrolls came in well above forecasts and the unemployment rate edged lower in January, retreated 0.1% on the day.

"Job growth appears strong overall, but it's mainly concentrated in just a couple of sectors," said Brendan McKenna, an economist at Wells Fargo.

"If the Federal Reserve delays interest rate cuts, Latin American currencies could face pressure. However, it's still unclear which direction the Fed is heading."

Heavyweight Brazilian stocks .BVSP surged 2%, also hitting an all-time high, buoyed by pulp maker Suzano's SUZB3.SA 11.4% jump after it posted better-than-expected earnings for the fourth quarter.

Brazil's currency BRL= rose 0.1%, extending its advance to a fourth straight session, its longest winning streak since early November.

In Mexico, the peso MXN= was little changed, underperforming peers. Meanwhile Mexican stocks .MXX rose 0.3%.

Uncertainty mounted after Bloomberg News reported that President Donald Trump has privately floated the idea of pulling out of the North American trade pact, a move that could complicate already-sensitive negotiations between the U.S., Canada and Mexico.

The Mexican peso also took a hit after Bank of Mexico Deputy Governor Jonathan Heath warned inflation was unlikely to return to the central bank's 3% target by the second quarter of next year. Recent data, meanwhile, has pointed to an economy heating up, backing the central bank's decision to keep rates on hold.

More broadly, Latin American stocks have been beating both the S&P 500 .SPX and Europe's STOXX .STOXX so far this year, and analysts see room for the rally to run. A rotation away from richly valued U.S. tech, paired with a renewed appetite for cheaper and overlooked corners of markets, has put the region in focus.

Elsewhere, the Colombian peso COP= has more ground to make up, as year-to-date, it continues to lag its peers with political risk creeping into the picture. It was up 0.3% on the day.

The country is expected to vote as many as three times starting in March to elect new legislators and a new president.

Stocks .COLCAP, buoyed by hopes of a more investor-friendly administration in 2025, were up about 15% year-to-date.

Meanwhile, Bolivia's international dollar bond USP37878AE81=TE gained after Bloomberg News reported the country is in talks with the IMF on a program that could unlock up to $3.3 billion in financing.

Key Latin American stock indexes and currencies: