EMERGING MARKETS-Most Latin American currencies shine as dollar softens, Petrobras falls

* Brazil's Petrobras sinks after Q4 results * Chile's peso outshines local peers * Stocks down 1.3%, FX off 0.2% By Shashwat Chauhan March 8 (Reuters) - Most Latin American currencies appreciated against the dollar on Friday, as fresh U.S. jobs data did little to alter midyear interest rate cut bets by the Federal Reserve, while Brazilian markets were rattled following Petrobras's quarterly results. At 10:01 a.m. ET (1501 GMT), a gauge of EM stocks lost 1.3%, with heavyweight Sao Paulo shares retreating 1.4%. Brazil's state-run oil company Petrobras plunged 11.0% after the firm's dividend frustrated investors and triggered analyst downgrades. Weak iron ore prices also weighed on Brazil's currency, the real tumbling 0.8% against the dollar to 4.9748, a whisker away from the psychologically important level of 5 per greenback. MSCI's index for Latin American currencies dropped 0.2%, though on track for its second straight weekly advance. On the bright side, Chile's peso outpaced regional peers, jumping 1.9% after official data showed consumer prices in the Andean country rose more than expected in February. Citing easing inflationary pressures, Chile's central bank had cut its benchmark interest rate by 100-basis-points in January. Aiding regional currencies in South America, the dollar index, which measures the greenback against a basket of major global peers, fell 0.2% after U.S. job growth accelerated in February, but a rise in the unemployment rate and moderation in wage gains kept on the table an anticipated interest rate cut in June from the Fed. "An ostensibly strong labor report has some mixed messages under the surface, and overall should keep current rate cut expectations in line," said Adam Hetts, global head of multi-asset at Janus Henderson. "(However) there were large revisions to prior months, unemployment moved up, and wages were below expectations ... overall, the risk of sticky inflation remains." Mexico's peso rose 0.5% to 16.7813 per dollar, hitting its highest level in over six-moths, while Colombia's peso added 0.2% against the dollar. Peru's sol extended gains to a sixth straight session, rising 0.4% to 3.6822 per greenback, its highest level so far this year. Overnight, Peru's central bank held its benchmark interest rate at 6.25%, defying expectations of a 25-basis-point rate cut following an uptick in inflation in February. Argentina's main stock index rose 1.2% in early trade, though eyed its second straight weekly fall. HIGHLIGHTS ** Argentina inflation seen cooling as Milei austerity tempers food prices ** Peru copper output seen growing to 3 mln tons in 2024, minister says ** Foreign direct investment in Colombia to rise up to 4% this year, minister says Key Latin American stock indexes and currencies at 1501 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1038.51 0.8 MSCI LatAm 2490.98 -1.27 Brazil Bovespa 126578.03 -1.37 Mexico IPC 55207.46 0.29 Chile IPSA 6378.34 0.33 Argentina MerVal 1006891.22 1.215 Colombia COLCAP 1314.50 0.08 Currencies Latest Daily % change Brazil real 4.9751 -0.85 Mexico peso 16.7811 0.53 Chile peso 962.1 2.10 Colombia peso 3903.68 0.25 Peru sol 3.6811 0.48 Argentina peso 846.5000 0.00 (interbank) Argentina peso 970 1.55 (parallel) (Reporting by Shashwat Chauhan in Bengaluru; editing by Jonathan Oatis and Nick Zieminski)