EMERGING MARKETS-LatAm stocks, FX fall for 4th straight session

* LatAm stocks, FX fall on recovery concerns, profit-taking

* Rising oil prices cushion market fall

* Petrobras down on report of government capital injection

By Walter Brandimarte

NEW YORK, Aug 27 (Reuters) - Latin American stocks and
currencies weakened for a fourth straight session on Thursday
as lingering concerns about the global economic recovery caused
investors to take more profits from recent gains.

The market decline was cushioned by a rise of nearly 1.5
percent in the price of U.S. crude oil, which improved the
outlook for oil-exporting economies in the region, and by a
late rebound on Wall Street.

Risk appetite remained subdued, however, as investors still
worried that markets might have rallied too much, pricing in an
economic recovery that may be less strong than expected.

"Markets have been very volatile, reflecting uncertainties
and expectations about the future of the global economy," said
Gerson da Nobrega, manager of the currency desk at Sao
Paulo-based Alfa Investimento bank.

The MSCI stock index for Latin America .MILA00000PUS fell
0.99 percent. The benchmark indicator has lost nearly 3 percent
this week, but still holds gains of more than 80 percent since
its March lows.

Mexico's IPC stock index .MXX tracked Wall Street higher
to close with gains of 0.8 percent, but the Brazilian Bovespa
index .BVSP finished 0.11 percent lower, weighed down by a
0.93 percent decline in the shares of state-owned oil firm
Petrobras (PETR4.SA).

Investors sold Petrobras' stock after daily newspaper Valor
Economico reported the government may inject up to an
additional 100 billion reais ($53 billion) in the oil giant,
possibly diluting the participation of minority shareholders.
For details, see [ID:nLR569089].

In Argentina, the MerVal stock index .MERV closed
unchanged in thin trading volume, while bond prices fell with
investors awaiting the beginning of a government debt swap deal
on Friday.

The Argentine government plans to swap up to $2.3 billion
of the controversial inflation-indexed CER bonds for a reopened
2014 bond as it seeks to ease a financing crunch by extending
maturities.

Most Latin American currencies ended lower. The Mexican
peso MXN= weakened for the fourth consecutive session on
uncertainty about the country's 2010 budget and concerns that
the central bank could soon end daily dollar sales.

The Mexican currency traded 0.59 percent lower in late
afternoon at 13.2375 per greenback.

The Brazilian real BRBY weakened 0.21 percent to 1.866
per dollar, although it trimmed losses in the afternoon as Wall
Street entered into positive territory.

Earlier on the session, Brazil reported that its primary
budget surplus tumbled 71 percent in July from a year earlier,
to 3.18 billion reais ($1.71 billion), less than expected by
economists on average. It was the worst July performance since
the government started compiling that data in 1991, the central
bank said. [ID:nN27313266]

The Colombian peso COP=STFX, on the other hand, firmed
0.34 percent to 2,029.15 per dollar in a volatile session.
(Additional reporting by Jenifer Correa in Sao Paulo; Editing
by Dan Grebler)