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EMERGING MARKETS-Brazil's real near one-month high on rebound hopes, LatAm stocks fall

    * Economic data points at stable recovery in Brazil
    * Brazil government presents public sector reform bill
    * Sharp declines on Wall St hit global equities
    * Mexican peso firms as labor market recovers
    * LatAm currencies to pick up in near term -poll

    By Sagarika Jaisinghani
    Sept 3 (Reuters) - Brazil's real firmed to a near one-month
high on Thursday as a clutch of data raised hopes of a steady
post-pandemic economic rebound, while Latin American stocks
tracked declines on Wall Street as investors dumped high-flying
tech stocks.
    The real firmed 0.4% to the dollar, gaining for a
third straight session as data showed industrial output rose 8%
in July at a much stronger pace than economists had expected.

    The figures are the latest in a series of macroeconomic
indicators to suggest a pickup in business activity in Latin
America's biggest economy. Central bank chief Roberto Campos
Neto said on Wednesday the economy was on course to grow by 4%
or more in 2021.
    "Overall, it looks like Brazil's economy is enjoying a
strong third quarter," said William Jackson, chief emerging
markets economist at Capital Economics. "However, with fiscal
tightening likely next year, we expect the pace of recovery to
slow sharply."
    Brazil's government on Thursday presented to Congress a
constitutional reform bill aimed at simplifying and reducing the
cost of its public sector, which would make it easier to fire
civil servants and cut certain benefits, and gives the president
sweeping powers to eliminate public sector jobs and bodies.

    Brazil's stock index fell 0.9%, with miner Vale SA
 sliding 3.3% as Federal prosecutors in Brazil's Minas
Gerais state sought a court order to replace the company's
executives who are accused of disregarding safety methods in the
aftermath of two deadly mining disasters.
    A broader index of regional equities slipped
for a second straight day as a 2.5% slide in the U.S. benchmark
S&P 500 knocked global investor sentiment. The tech-heavy
Nasdaq tumbled as much as 5% as traders sold
market-leading stocks including Apple Inc.
    Bourses in Mexico, Argentina and Colombia
 shed more than 1%, while the Chilean stock index
 outperformed with a 0.3% decline.
    Among currencies, the Mexican peso firmed 0.4% to the
dollar as data showed nearly 1.5 million more Mexicans were
economically active in the labor market in July compared with
June.
    Latin American currencies will pick up somewhat in the near
term as investors watch the U.S. presidential election campaign
for any hints about Washington's future approach toward the
region, a Reuters poll showed.
    
    Key Latin American stock indexes and currencies:    
     Stock indexes              Latest    Daily % change
 MSCI Emerging Markets           1108.87            -0.9
                                          
 MSCI LatAm                      2007.41           -0.11
                                          
 Brazil Bovespa                100967.92           -0.93
                                          
 Mexico IPC                     36509.04           -1.47
                                          
 Chile SPIPSA                    3804.11           -0.28
                                          
 Argentina MerVal               44474.85          -0.897
                                          
 Colombia Colcap                 1237.79           -1.62 Currencies              Latest    Daily % change
 Brazil real                      5.3072            0.91
                                          
 Mexico peso                     21.6400            0.32
                                          
 Chile peso                        772.8           -0.26
                                          
 Colombia peso                   3663.04           -0.19
 Peru sol                         3.5397           -0.14
                                          
 Argentina peso (interbank)      74.3700           -0.07
                                          
 

 (Reporting by Sagarika Jaisinghani in Bengaluru
Editing by Chris Reese)
  
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