* Latin American currencies up 0.2%, stocks down 0.2% * Chile's economic activity beats market forecasts in March * Colombia inflation seen slowing in April but ending 2025 high * Argentina markets closed for holiday (Updates with afternoon trading levels) By Nikhil Sharma May 2 (Reuters) - Most Latin American currencies rose on Friday as investors returned from a holiday with renewed optimism around a potential resolution of the U.S.-China trade dispute, while markets assessed strong U.S. employment data. MSCI's index for regional currencies <.MILA00000CUS> was up 0.2%, on pace for its third consecutive weekly gain. In contrast, the U.S. dollar index dipped 0.1%. The greenback trimmed some losses after data showed U.S. job growth slowed marginally in April and the unemployment rate held steady at 4.2%, assuaging fears that the world's biggest economy was nearing a recession after the GDP shrank in the first quarter. Most global risk assets rose after Beijing said on Friday it was "evaluating" an offer from Washington to hold talks over U.S. President Donald Trump's sweeping tariffs. Throughout the week, the world's top two economies gave multiple indications of a potential de-escalation in their market-rattling trade war. "The easing of U.S.-China tensions has been positive. But I am inclined to think that perhaps people are getting too optimistic," said Jon Harrison, managing director of EM macro strategy at TS Lombard. "A lot can happen in terms of delays and uncertainty regarding U.S.-China negotiations." Brazil's real was among the best-performing currencies on Friday, rising 0.3% against the dollar and on track for a third successive weekly advance. The country's central bank is widely expected to lift its benchmark interest rate to the highest level in almost 20 years on May 7, but the move is likely to be smaller than the last three consecutive 100-basis-point hikes. "(Brazil's) currency and the local debt markets are more attractive at the moment ... so, given high interest rates and slowing growth, that's an environment good for fixed income," TS Lombard's Harrison added. Meanwhile, Chile's peso was up 0.2% against the greenback. Economic activity in the world's largest copper producer rose 3.8% in March from the year-earlier period, beating market forecasts. That data followed the central bank's move to keep its benchmark interest rate steady at 5%. In Colombia, a Reuters poll showed inflation likely slowed in April for the second month running, but expectations for the end of the year continued to rise. Its peso was up 0.4%. The central bank on Wednesday made a surprise 25-basis-point rate cut. The Mexican peso was steady for the day, on pace for marginal weekly losses. An index of regional stocks <.MILA00000PUS> trimmed early losses, now down 0.2%. However, for 2025, the index has advanced about 18% so far. The currencies index was up 11.8% for the year. Latin American assets have largely evaded sharp selling pressures due to relatively lower U.S. import tariffs for the region's products. Elsewhere in emerging markets, the focus will be on Romania's presidential election re-run on Sunday, which could propel ultra-nationalist George Simion to power, an outcome likely to cause unease in the European Union and NATO and unsettle investors. Markets in Argentina remained closed for a public holiday. Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets <.MSCIEF> 1135.71 2.13 MSCI LatAm <.MILA00000PUS> 2186.17 -0.14 Brazil Bovespa <.BVSP> 134972. -0.07 07 Mexico IPC <.MXX> 55808.6 -0.8 4 Chile IPSA <.SPIPSA> 8011.6 -0.37 Argentina MerVal <.MERV> 2100843 -2.69 .66 Colombia COLCAP <.COLCAP> 1636.47 0 Currencies Latest Daily % change Brazil real 5.6541 0.33 Mexico peso 19.5971 -0.02 Chile peso 944.8 0.21 Colombia peso 4244.5 0.43 Peru sol 3.6486 0.38 Argentina peso (interbank) - - Argentina peso (parallel) - - (Reporting by Nikhil Sharma; Editing by Paul Simao and Alan Barona) ((Nikhil.Sharma@thomsonreuters.com)) Keywords: EMERGING MARKETS/ (UPDATE 1)
