* Wall St sinks as tech sell-off resumes * Latam FX index set for second straight weekly gain * Brazil stock index tracks first weekly decline in three (Updates prices throughout, adds comments) By Sagarika Jaisinghani and Shreyashi Sanyal Sept 4 (Reuters) - The Brazilian real retreated on Friday against a dollar that firmed after data showed jobs growth slowed in the United States, while a tumble on Wall Street for a second straight day hit Latin American equities. The real rose as much as 0.9% to 5.2460 before falling 0.2%. The currency is hovering at one-month highs as investors bet on a steady economic recovery after a slate of upbeat data this week. Figures on Friday showed new auto sales rose 5.1%, the latest in a series of data to signal a pickup in business activity. Brazil's government on Thursday presented to congress a constitutional reform bill aimed at simplifying and reducing the cost of its public sector, which gives the president sweeping powers to eliminate public sector jobs and bodies without congressional approval. "Given the heavy public debt burden, this degree of largesse is unlikely to continue," said William Jackson, chief emerging markets economist at Capital Economics. "Indeed, the 2021 budget plan presented by the government on Monday outlined the fiscal straitjacket." The U.S. dollar strengthened, knocking down a gauge of Latin American currencies, after the U.S. Labor Department reported job growth slowed further in August with financial assistance from the government virtually depleted. The Mexican peso firmed 0.6% as a consumer confidence index rose for the third month in a row in August. The currency has dropped 12% in 2020 and is set for its worst year since 2016 as the COVID-19 pandemic battered Latin America's no. 2 economy, forcing factories to shut and hitting trade. A Reuters poll found FX strategists think most major emerging market currencies will hold gains made since March's financial market crash into next year. In twelve months, they expect South Africa's rand will have gained about 2.0%, the Brazilian real 7.0% and the Russian rouble 8.0%. Elsewhere in Latin America, the Chilean peso firmed 0.3%, while the Colombian peso eased 0.7%. The Brazilian stock index shed 0.3% and was set for its first weekly decline in three. On Wall Street, the Nasdaq fell as much as 5% for a second straight day as investors sold off heavyweight tech stocks that have been largely responsible for a stunning rally in U.S. equities since April. Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 1098.43 -0.94 MSCI LatAm 2002.95 0.05 Brazil Bovespa 100442.03 -0.28 Mexico IPC 36232.76 -0.54 Chile IPSA 3820.26 -0.67 Argentina MerVal 44357.46 -0.988 Colombia COLCAP 1246.74 -0.01 Currencies Latest Daily % change Brazil real 5.2994 -0.19 Mexico peso 21.5190 0.66 Chile peso 773 0.25 Colombia peso 3714 -0.69 Peru sol 3.5257 0.68 Argentina peso (interbank) 74.4300 -0.07 Argentina peso (parallel) 129 3.88 (Reporting by Shreyashi Sanyal and Sagarika Jaisinghani in Bengaluru Editing by Chris Reese and Sonya Hepinstall)
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