EMERGING MARKETS-Currencies firm after U.S. jobs data; Brazilian real leads

* Brazil's real up 1.7%, but outlook bleak - economist * Russian rouble, S.African rand cut losses after U.S. data * Banco Bradesco rallies after Q3 beat * Argentine cenbank advises against increasing dollar reserves (Adds comments, updates prices throughout) By Susan Mathew and Shreyashi Sanyal Nov 5 (Reuters) - Emerging market currencies firmed on Friday, with Brazil's real jumping more than 1%, after strong U.S. job numbers and positive reports on an experimental Pfizer COVID-19 pill increased optimism about the global economic recovery. Most currencies hit session highs, with those of Russia and South Africa erasing session losses of over 0.6% after data showed U.S. nonfarm payrolls rose by 531,000 jobs last month, compared with estimates for 450,000. The unemployment rate fell to 4.6% from 4.8% in September. Most Latin American currencies also firmed, with Mexico's peso rising 1%, putting MSCI's index of EM currencies on track to cut almost all its losses this week. Pfizer Inc's experimental antiviral pill for COVID-19 was shown to cut by 89% the chances of hospitalization or death for adults at risk of developing severe disease. This propped up travel and tourism-related stocks globally. Riskier currencies thrive on U.S. rates staying low as they benefit from the interest rate differential that increases their appeal for so-called carry trade, in which investors borrow in a low-yielding currency to invest in higher-yielding assets. Brazil's real led gains in Latin America and was on course to end the week almost 2.2% higher. But in Brazil the outlook for financial markets looks bleak, Capital Economics said in a note to clients. "We don't think a rebound in Brazil's financial markets is imminent, as we doubt the headwinds facing them are likely to go away any time soon," they said. These included monetary policy being tightened at the risk of economic growth, slowing economic growth in export destination China, and mounting political and fiscal concerns, they added. Brazil also recently opened the door to a one-off breach of a constitutional spending cap to pay for a bigger welfare program proposed by President Jair Bolsonaro. But analysts at Credit Suisse said the nearly 100 billion reais in budget funds to be freed up are essential for the government to be able to create the Auxilio Brasil — the social program that will replace the Bolsa-Familia. "If rejected, the government can extend the emergency aid paid to 39 million people since the beginning of the pandemic, using extraordinary credit," they said. Sao Paulo-listed stocks gained 1.3% to rise from one-year lows hit last session. Banco Bradesco was the top gainer, up 5% after raising its outlook for lending and fees after its quarterly profits topped estimates. In Argentina, the central bank said it had ordered local financial institutions not to increase the amount of reserves held in foreign currencies this month, amid foreign exchange rate uncertainty ahead of Nov. 14 congressional elections. Peru's sol rose from three-week lows after Congress on Thursday confirmed a new moderate left Cabinet, while Colombia's peso hit lows not seen since August despite an upgrade to its economic growth forecast by the finance ministry. Key Latin American stock indexes and currencies at 1915 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1265.39 -0.24 MSCI LatAm 2159.27 1.59 Brazil Bovespa 104785.82 1.33 Mexico IPC 52017.84 0.28 Chile IPSA 4387.36 -1.92 Argentina MerVal 92406.17 1.258 Colombia COLCAP 1387.57 -0.33 Currencies Latest Daily % change Brazil real 5.5166 1.65 Mexico peso 20.3288 1.03 Chile peso 811.8 0.27 Colombia peso 3870.03 -0.01 Peru sol 3.9996 0.09 Argentina peso (interbank) 99.9400 0.03 Argentina peso (parallel) 196 1.53 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru; Editing by Steve Orlofsky and Jan Harvey)