U.S. Markets close in 3 hrs 21 mins

EMERGING MARKETS-Latam FX up vs softer dollar, Argentina's peso licks its wounds

By Aaron Saldanha April 26 (Reuters) - Latin America currencies firmed against the dollar on Friday, with a resurgent Argentine peso taking back a chunk of ground lost during Thursday's turbulent session.

The dollar slid after data showed a burst in first-quarter U.S. economic growth was driven by temporary factors that are likely to reverse in the coming quarters, providing pressured developing world currencies a welcome reprieve.

Argentina's peso firmed about 1.8% on returning risk appetite as wild ructions seen earlier this week eased. Stocks rose 1.3%.

A hedge fund trader looking at Argentina credit default swaps (CDS) or Argentine dollar bonds would "want to grab onto something tangible," which would support the reversal in the market's momentum, said Roger K. Horn, senior EM strategist at SMBC Nikko Securities America.

The peso set a fresh record low on Thursday and CDS on the country spiked as debt investors ran for the exits, due in part to political uncertainty around elections later this year. The hyper volatile currency was still set to post a weekly loss of 5.9%.

MSCI's index of Latin American stocks rose 0.5%, set to post a modest weekly gain.

Brazil shares were 0.2% lower on the day, but were on course to close the week with a 1.8% gain largely on progress made regarding the passage of a much-awaited pension reform proposal.

State-run oil firm Petroleo Brasileiro SA saw its common shares and preferred shares fall 0.6% and 1.2%, respectively, following sliding oil prices.

Brazil's real surged 0.7%. Central Bank President Roberto Campos Neto said that there is no imminent change expected in the way the bank conducts monetary policy, reiterating expectations for a medium-term economic recovery.

The Mexican peso rose 0.6% in its best performance in more than three weeks, while stocks dipped 0.3%.

Colombia's peso firmed 0.2%, ahead of a central bank review of borrowing costs later in the day. Most market participants expect no change in interest rates.

Colombian stocks fell 0.4%, with oil firm Ecopetrol SA sliding 1.6% on soft oil prices.

Chile's peso rose 0.3% tracking a gain in the price of copper, the country's top export.

Latin American stock indexes and currencies at 1411 GMT Stock indexes daily % Latest change MSCI Emerging Markets 1077.66 0.09 MSCI LatAm 2772.11 0.52 Brazil Bovespa 96336.26 -0.22 Mexico IPC 44889.93 -0.3 Chile IPSA 5168.41 -0.04 Argentina MerVal 29937.55 1.29 Colombia IGBC 12924.69 -0.41 Currencies daily % change Latest Brazil real 3.9342 0.53 Mexico peso 18.9110 0.55 Chile peso 673.3 0.30 Colombia peso 3225.57 0.24 Peru sol 3.318 0.24 Argentina peso (interbank) 44.4000 1.58 (Reporting by Aaron Saldanha in Bengaluru; Editing by Andrea Ricci)