Updates to mid-session trading

By Purvi Agarwal and Ragini Mathur

Feb 6 (Reuters) - Most Latin American currencies strengthened against the dollar on Friday, while stocks recovered from two sessions of declines, positioning the broader indexes to end a turbulent week in positive territory.

MSCI's index tracking stocks in Latin America .MILA00000OUS and the currencies' equivalent .MILA00000CUS were on track for marginal weekly gains, which would mark their seventh weekly increase in a row.

This resilience comes despite a week of sharp volatility, as wild swings in precious metal prices and a tech sector selloff rippled through Asian emerging markets and resource-dependent economies across Latin America and South Africa.

Still, as investors moved out of the U.S. in a bid to diversify their holdings, emerging markets excluding China saw $12 billion in inflows, according to data from BofA Global Research.

"LatAm markets were under pressure along with other risk assets, but they still performed relatively well, reflecting the fact that the central banks are largely on track and that the fiscal positions generally are on course," said Rachel Ziemba, founder of Ziemba Insights.

On the day, heavyweight stocks in Brazil .BVSP were up slightly, with gains countered by a 2.4% decline in Bradesco BBDC3.SA after the lender said it expects slower growth in its credit portfolio this year.

Brazil's real BRL= appreciated 1%, on track for its sixth week of gains. The country's Finance Ministry projected 2.3% growth for the economy in 2026, matching its expected pace for 2025, while inflation was forecast to ease but remain above target.

The dollar index =USD weakened 0.3% on the day, lifting Latin American currencies, a day after data showed U.S. jobless claims increased last week and job openings fell to an over-five-year low in December.

"Supporting markets may be the view that the Federal Reserve is ready to run to the rescue again... Helping that adjustment to Fed pricing was some surprisingly soft U.S. labour market data yesterday," said Chris Turner, global head of markets research at ING.

Stocks in Mexico .MXX advanced 2.3% and were set for their biggest weekly gain in nine months.

Colombian equities .COLCAP gained 1.6%, but they were on track for their biggest weekly drop in over ten months.

The currencies in these oil exporting counties MXN=, CLP= were also up as crude prices climbed on the day.

Chile's peso CLP= was trading 1.3% higher but local stocks .SPIPSA fell 0.3%. Data showed Chile's 12-month inflation fell in January to its lowest level in more than five years.

Argentina will give preferential market access to U.S. goods exports as part of a new trade and investment agreement that prohibits barriers to digital trade and enhances cooperation on economic and national security issues, the U.S. Trade Representative's office said on Thursday.

Argentina's peso ARS=RASL appreciated 0.8% against the dollar.

Key Latin American stock indexes and currencies:

(Reporting by Purvi Agarwal and Ragini Mathur in Bengaluru; Editing by Andrea Ricci and Krishna Chandra Eluri)

((Purvi.Agarwal@thomsonreuters.com;))