Brazil's benchmark Bovespa stock index fell about 0.7 percent, trimming the nearly 5 percent gains it accumulated over the past two days.

Bets that Brazilian policymakers will tighten monetary policy also weighed on local stocks, eclipsing encouraging jobs data in the United States. Such expectation grew after government data showed inflation jumped more than expected in February.

Shares of OGX Petroleo e Gas Participacoes SA and state-led oil firm Petrobras dropped 6.7 percent and 3.1 percent, respectively, as investors pocketed part of their recent gains.

OGX jumped more than 16 percent on Thursday after owner Eike Batista, until recently Brazil's richest man, inked a deal with investment bank BTG Pactual for credit and long-term financing.

Petrobras' shares had risen 7 percent between Wednesday and Thursday after the company announced an increase in wholesale diesel prices.

In Mexico, the IPC index edged higher 0.1 percent after the central bank cut interest rates by half a percentage point to 4.0 percent, improving the outlook for the Mexican economy.

Gains were modest, however, as investors were unwilling to further increase bets on Mexican equities despite a stock rally in the United States, Mexico's main trading partner.

"The Mexican market is certainly a little disconnected from the US market today, but we feel this is a result of stock valuations, which are above their fair price," said Manuel Lasa, a director with Interacciones brokerage.

In Chile, the benchmark IPSA index rose 0.6 percent, while the broader IGPA index gained 0.4 percent.