Mexican and Chilean shares tracked global markets lower after data showed employers in the United States hired at the slowest pace in nine months in March, casting doubt over the strength of a recovery in the world's largest economy.
Brazil's benchmark Bovespa stock index rose 0.74 percent to close at 55,050.60, after the government announced that it will reduce taxes for construction, engineering, railway and electricity companies.
Construction firm PDG Realty contributed most to the index's gains, rising 6.67 percent, while homebuilder Gafisa rose 5.22 percent. Earlier in the session, the Bovespa touched its lowest level since late July.
"It was a crazy day in the market," said Carlos Nielebock, a trader at ICAP in Sao Paulo, Brazil. He said the electric sector rose on the government's tax measure announcement but noted that investor skepticism continued to weigh on OGX Petroleo e Gas Participacoes SA.
It "is the same thing we saw yesterday: it's a lack of trust in the company and the stock," he said.
Shares of the oil producer, owned by billionaire Eike Batista, sank to their lowest price since their market debut in 2008, closing down 13.64 percent after losing nearly 11 percent on Thursday.
The slump came two days after Standard & Poor's lowered its credit rating on the company to "B minus" from "B" citing concerns over production levels.
The weak US jobs data weighed heavily on Mexico's stock market, with Mexico's IPC index falling 0.74 percent to 42,244.25.
The United States is Mexico's no. 1 trade partner and Mexico's stocks often rise or fall based on the outlook for economic growth in its northern neighbor.
"From this, you see more moderate growth in the United States economy and as a consequence that is reflected in lower growth for Mexico," said Gerardo Copca, an analyst at MetAnalisis, a consultancy based in Mexico City.
Shares of financial group Banorte fell 4.22 percent, weighing most on the index, after Bloomberg news reported Mexico's fourth largest bank is planning to raise about $2 billion through a share offering this year.
Shares of retail giant Wal-Mart de Mexico slipped 1.77 percent, while shares of telecommunications firm America Movil, controlled by billionaire Carlos Slim, dropped 1.04 percent.
Mexico's competition watchdog said late Thursday that America Movil unit Telcel dominates the country's phone market, opening the door to tougher regulation of the firm.
Chile's IPSA index retreated for the fifth straight session, losing 1.3 percent to 4,270.82 as shares of retailer Falabella fell 1.52 percent.