EMERGING MARKETS-Mexico peso up on US data; China, Spain weigh

Wed Oct 3, 2012 4:47pm EDT

* US jobs, service sector data stronger than expected
    * Chinese data suggests economy slowing for 7th quarter
    * Mexico peso gains 0.3 pct, Brazil real up 0.2 pct

    By Natalia Cacioli and Jean Arce
    SAO PAULO/MEXICO CITY, Oct 3 (Reuters) - Mexico's peso edged
up on Wednesday after encouraging U.S. employment and service
sector data improved the outlook for the Mexican economy.
    But uncertainty related to Spain as well as a slowdown of
the Chinese economy weighed on Latin American foreign exchange
markets.
    "Markets are wondering whether Spain will request a bailout
or not. That raises investors' appetite for safe-haven assets
such as the dollar," said Mauricio Nakahodo, an economic
research consultant with Tokyo-Mitsubishi bank in Sao Paulo.    
    The Mexican peso gained 0.3 percent to 12.820 per
dollar after data showed growth in the U.S. services sector
picked up in September, defying economists' expectations for a
slight decrease, while the private sector added more jobs than
forecast last month. 
    "If there is one place where there is growth, it is the
United States and not the rest, which is a bit positive for
Mexico in general and the peso," said Enrique Alvarez, an
analyst at IDEAglobal in New York.    
    The United States is Mexico's main trading partner and a
rebound in the U.S. economy could translate into more dollar
inflows into its southern neighbor.
    The Brazilian real  gained 0.2 percent to 
2.0224 per dollar with traders citing some dollar inflows.
    Expectations that the central bank would intervene in the
market to stop the currency from gaining past the level of 2 per
dollar -- considered beneficial to exporters -- have greatly
reduced the currency's volatility in the past few months.
    Chile's peso edged 0.1 percent lower to 473.40 per
greenback after purchasing managers indexes suggested China's
economic slowdown was likely to extend to a seventh quarter.   
China is the main destination of Chile's copper exports.
 
             
    Latin American FX prices at 2030 GMT:
    
 Currencies                         daily %    YTD %
                                     change   change
                            Latest           
 Brazil real                2.0224     0.18    -7.59
                                             
 Mexico peso               12.8200     0.31     8.97
                                             
 Argentina peso*            6.2300     0.48   -24.08
                                             
 Chile peso               473.4000    -0.08     9.70
                                             
 Colombia peso          1,802.4500    -0.19     7.54
                                             
 Peru sol                   2.5980     0.00     3.81
                                             
 * Argentine peso's rate between                    
 brokerages
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