By Shreyashi Sanyal
       June 30 (Reuters) - Latin American currencies and stocks
gauges outperformed broader emerging markets in the first half
of the year on Friday, while Colombia's peso traded in a tight
range as its central bank geared up to likely pause its interest
rate hiking regime. 
    The MSCI's index for Latam currencies has
risen nearly 17% in the first sixth months of 2023, while its
stocks counterpart has jumped a little over 15%.
The MSCI's broader gauge for emerging market stocks
added 3.5% in the six months up to June, while its FX index
 gained just about 1%. 
    Colombia's peso led the advance among Latam
currencies in the first-half, strengthening some 14%. The
currency has benefited from optimism around a likely delay in
leftist President Gustavo Petro's proposed social reforms as he
weathers a political scandal.
    The currency was flat as investors will now shift focus to
Colombia's central bank later in the day, which is widely
expected to hold its rate steady, ending nearly two years of
rate rises meant to contain inflation.    
    Brazil's real rose 0.7% against a weakening
dollar after U.S. economic data showed a cooling in
consumer spending, raising some doubt about the potential
aggressiveness of the Federal Reserve. The real is up about 9%
so far this year. 
    Data showed Brazil's jobless rate fell for the third rolling
quarter in a row in the three months through May, underscoring
the strength of the labor market in Latin America's largest
economy despite high interest rates.
    Brazilian state-run oil company Petrobras fell 4%
after it said it will reduce the prices of gasoline and cooking
gas sold to distributors starting Saturday.
    Latin American investors were also hopeful that major
central banks in the region, which have led some of the most
aggressive tightening over the last two years, may be poised to
lead the world on interest rate cutting amid clear signs of
slowing inflation in places like Chile and Brazil.
    "It now feels like the bar for not hiking in August is
pretty high," said Kimberley Sperrfechter, emerging market
economist at Capital Economics.  
    "And it would require nasty upside surprises in the
inflation figures in July (unlikely), congress derailing the
government's fiscal plans (also unlikely) and/or a sharp fall in
the real."
    The Mexican peso was also among top gainers in the
first half, up about 12%. 

    Latin American stock indexes and currencies at 1556 GMT:
    
        Stock indexes                Latest   Daily
                                                %
                                              change
 MSCI Emerging Markets                990.06     0.3
 MSCI LatAm                          2452.03    0.83
 Brazil Bovespa                     119016.2    0.54
                                           9  
 Mexico IPC                         53447.78   -0.26
 Chile IPSA                          5777.40    0.86
 Argentina MerVal                   414954.4  -0.363
                                           9  
 Colombia COLCAP                     1134.23    0.29
                                                    
            Currencies               Latest   Daily
                                                %
                                              change
 Brazil real                          4.8140    0.65
 Mexico peso                         17.1450   -0.13
 Chile peso                            801.9    0.12
 Colombia peso                          4161    0.52
 Peru sol                             3.6264   -0.20
 Argentina peso (interbank)         256.6500   -0.16
                                              
 Argentina peso (parallel)               488    1.23
                                              
 

 (Reporting by Shreyashi Sanyal in Bengaluru; editing by Grant
McCool)