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EMERGING MARKETS-LatAm FX down as U.S. economic data overshadows wages

SAO PAULO, Nov 3 (Reuters) - Latin American currencies weakened on Friday after upbeat data on U.S. services and manufacturing overshadowed tepid wage growth. U.S. services activity rose at the fastest pace since August 2005 in October, according to the ISM report on the nation's non-manufacturing sector, easily outpacing analysts' expectations. Along with data showing rising factory orders, the report fueled hopes of increasing strength in the U.S. economy that could drive the Federal Reserve to raise interest rates at a faster-than-expected pace in coming months. Higher U.S. rates would likely dampen demand for emerging market currencies, which offer higher yields. Still, some traders remained concerned over the U.S. labor market's strength after a series of mixed reports. Earlier on Friday, data showed a sharp retreat in annual U.S. wage gains and a surge in the number of people dropping out of the work force in October, casting a doubt over the labor market. Currencies from Brazil, Mexico, Chile and Colombia weakened between 1 percent and 1.6 percent. Brazil's benchmark Bovespa stock index slipped 0.8 percent, with shares of discount retailer Lojas Americanas SA leading losses in the wake of weaker-then-expected quarterly results.

Key Latin American stock indexes and currencies at 1720 GMT:

Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1124.16 -0.28 30.74 MSCI LatAm 2747.32 -1.81 19.54 Brazil Bovespa 73358.77 -0.63 21.80 Mexico S&P/BVM IPC 47878.61 -0.94 4.90 Chile IPSA 5486.03 -0.47 32.15 Chile IGPA 27577.17 -0.41 33.00 Argentina MerVal 27782.44 -0.58 64.22 Colombia IGBC 10562.41 -0.6 4.29 Venezuela IBC 707.36 -0.83 -97.77 Currencies daily % YTD % change change

Latest

Brazil real 3.3170 -1.62 -2.04 Mexico peso 19.2095 -1.19 7.99 Chile peso 633.9 -0.96 5.81 Colombia peso 3072.87 -1.49 -2.32 Peru sol 3.247 -0.28 5.14 Argentina peso (interbank) 17.6500 -0.62 -10.06 Argentina peso (parallel) 17.97 0.33 -6.40

(Reporting by Bruno Federowski; Editing by Dan Grebler)