EMERGING MARKETS-Brazil stocks rebound after six-day string of losses

SAO PAULO, Sept 29 (Reuters) - Brazilian stocks rose on Friday as weaker-than-expected U.S. inflation data led to bargain-hunting following a six-day string of losses. The benchmark Bovespa stock index rose 0.5 percent after dropping 3.2 percent in the previous six sessions. The data showed annual inflation increasing at the slowest pace since late 2015, the latest in a series of tepid reports.

Although the report did little to change expectations that the U.S. Federal Reserve would raise interest rates in December, it cast some doubt about tightening after that. A slower pace of rate hikes could increase demand for high-yielding assets in emerging markets. Shares of Kroton Educacional SA, Brazil's largest for-profit college operator, led the gains on local media reports that it could purchase smaller rival Somos Educação SA. Somos shares rose 1 percent. The Brazilian real strengthened 0.5 percent in volatile trading as investors tried to influence a benchmark rate calculated by the central bank on the last trading day of each month. Still, investors warned that the upswing was fragile because of growing concern about whether Brazilian President Michel Temer's agenda would win passage. Corruption accusations have delayed his plan to streamline the social security system, seen as key to curb growth of public debt and boost long-term growth. "There is almost no chance that pension reform will be voted on this year," Magliano Corretora analyst Pedro Galdi said. Other Latin American currencies seesawed, heading for weekly losses. The Chilean peso was down 0.5 percent, while the Mexican peso was flat.

Key Latin American stock indexes and currencies at 1720 GMT:

Stock indexes daily % YTD % change change


MSCI Emerging Markets 1080.82 0.79 24.37 MSCI LatAm 2905.99 0.75 23.23 Brazil Bovespa 73926.90 0.49 22.75 Mexico S&P/BVM IPC 50362.68 0.45 10.34 Chile IPSA 5340.18 0.58 28.64 Chile IGPA 26673.37 0.52 28.64 Argentina MerVal 26021.25 1.66 53.81 Colombia IGBC 11049.48 -0.27 9.10 Venezuela IBC 487424.78 2.8 1437.36 Currencies daily % YTD % change change


Brazil real 3.1664 0.50 2.61 Mexico peso 18.1575 -0.02 14.24 Chile peso 638.55 -0.47 5.03 Colombia peso 2936.11 0.22 2.23 Peru sol 3.266 0.00 4.53 Argentina peso (interbank) 17.3450 0.89 -8.48 Argentina peso (parallel) 17.88 0.50 -5.93

(Reporting by Bruno Federowski; Editing by Lisa Von Ahn)