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EMERGING MARKETS-Brazil stocks fall on profit-taking after recent rally

SAO PAULO, Aug 3 (Reuters) - Brazilian stocks slipped on Thursday as traders booked profits from a recent rally, though increased confidence in prospects for structural reforms helped to curb losses. Brazil's benchmark Bovespa stock index fell 0.5 percent after closing above the 67,000 threshold on Wednesday for the first time since mid-May. The move came after the lower house of Congress voted to reject a corruption charge against President Michel Temer, saving him from facing a possible Supreme Court trial that could have ousted him from office. Analysts at political risk consultancy Eurasia Group increased the probability they attribute to Temer finishing his term to 70 percent from 60 percent, giving additional impetus to his efforts to streamline Brazil's social security system. Still, his support was less than hoped for, raising questions about how he will fare in future Congressional votes on more charges likely to be lodged against him. "Many pundits have been arguing that reforms would be held hostage until all potential charges... are voted by the lower house. In other words, nothing will get done until the second set of charges is voted," they wrote. "That view will probably prove to be overly pessimistic." Shares of Suzano Papel e Celulose SA fell 1.3 percent after jumping 11 percent over the previous two trading days. The wood pulpmaker late on Wednesday reported a 79 percent drop in second-quarter net profit, though analysts saw a solid operating result. The Brazilian real seesawed, tracking other Latin American currencies as traders awaited the release of key U.S. jobs figures on Friday that could provide further hints over the Federal Reserve's plan to cut policy stimulus. A Reuters poll showed the Brazilian real and the Mexican peso are likely to weaken less than previously thought, as low interest rates in the United States and the euro zone support demand for high-yielding assets. On Thursday, the Mexican peso slipped 0.2 percent, with traders sticking to caution despite a Fitch Ratings decision to revise the outlook on Mexico's sovereign rating to "stable" from "negative."

Key Latin American stock indexes and currencies at 1700 GMT:

Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1063.79 -0.58 24.09 MSCI LatAm 2780.33 0 18.79 Brazil Bovespa 66774.33 -0.54 10.87 Mexico S&P/BVM IPC 51241.09 0.08 12.27 Chile IPSA 5071.38 -0.51 22.16 Chile IGPA 25327.97 -0.48 22.16 Argentina MerVal 21835.39 0.17 29.07 Colombia IGBC 10947.54 -0.12 8.09 Venezuela IBC 157390.94 7.16 396.42 Currencies daily % YTD %

change change Latest

Brazil real 3.1169 0.07 4.24 Mexico peso 17.8685 -0.22 16.09 Chile peso 648.95 0.36 3.35 Colombia peso 2952.33 0.30 1.67 Peru sol 3.238 0.03 5.44 Argentina peso (interbank) 17.6550 -0.37 -10.08 Argentina peso (parallel) 18.19 0.38 -7.53

(Reporting by Bruno Federowski; Editing by Andrew Hay)