EMERGING MARKETS-Brazil real drags Latam FX lower amid dollar strength

25 basis points to 4.25%, as expected, but policymakers

* China to halve tariffs on some U.S. imports

* Brazil's Centauro soars on Nike deal


(Updates prices) Feb 6 (Reuters) - Brazil's real fell 1% on Thursday, reversing early gains made after the central bank signaled a pause in interest rate cuts a day earlier, with other Latin American currencies also coming under pressure from a strong dollar. The real neared a record low hit last week amid fears of the fast-spreading coronavirus in China hitting global growth. The currency was last down at 4.2825 per dollar, with the lack of investor inflows into Brazil weighing heavily on the real. The central bank on Wednesday cut the benchmark Selic rate signaled they were ready to pause monetary easing after five consecutive rate cuts, helping the real firm earlier in the session. "You could argue that the real looks a little bit undervalued on the basis that the economy is coming from a weak spot, and quite frankly the future is looking brighter," said Christian Lawrence, senior market strategist at Rabobank in New York. "That said, we're seeing a lot of pressure across emerging markets and the only saving grace for currencies is if you have a high carry (trade) like the Mexican peso." The coronavirus outbreak in China has sapped risk appetite for developing world assets in the past weeks. But, recently, stimulus and containment measures in China have been well received by investors, even as the death toll from the virus jumped to 563 in that country. In other news from China, its finance ministry said additional tariffs levied on some U.S. goods will be cut to 5% from 10% and others lowered to 2.5% from 5% starting Feb. 14.

However, the optimism faded with currencies of Mexico , Chile and Colombia weakening as the dollar gained ground after a batch of strong U.S. economic data. Among stocks, Brazil's Bovespa fell 1%, dragged lower by banking shares. Petroleo Brasileiro SA jumped 2% after confirming that development bank BNDES raised 22 billion reais ($5.19 billion) by selling shares in the state-owned oil firm.

Shares in Brazil's sports goods chain Centauro soared 12% after the announcement of a $212 million deal to take over Nike operations in the country.

Key Latin American stock indexes and currencies at 20:11 GMT

Stock indexes Latest Daily %


MSCI Emerging Markets 1100.72 1.04MSCI LatAm 2792.42 -1.27Brazil Bovespa 114878.93 -0.99Mexico IPC 44630.94 -0.34Chile IPSA 4699.53 0.52Argentina MerVal 40965.11 0.486Colombia COLCAP 1650.91 -0.33Currencies Latest Daily %


Brazil real 4.2825 1.1Mexico peso 18.6684 -0.41Chile peso 783.8 -0.74Colombia peso 3377.77 -0.44Peru sol 3.3748 -0.41Argentina peso (interbank) 60.6800 -0.15

(Reporting by Sruthi Shankar and Shreyashi Sanyal in Bengaluru; editing by Jonathan Oatis)