Latin American markets retreated on Friday after data showing US job growth surged in January and wages increased, lifting expectations of faster US interest rate hikes, which could dampen demand for risky emerging market assets. The robust employment report bolstered expectations of price pressures that could drive US inflation back toward the official target.
It underscored strong momentum in the economy, raising the possibility that the Federal Reserve could be a bit more aggressive in raising interest rates this year. The US central bank has forecast three rate increases this year after raising borrowing costs three times in 2017. The currencies of Brazil, Mexico and Colombia fell between 0.13 percent and 1.59 percent. Along with Argentina and Colombia, Brazil's benchmark Bovespa stock index led the losses among Latin American stock markets. Shares in Argentine power company Central Puerto SA fell as much as 24 percent on the Buenos Aires stock exchange on Friday after the company's US initial public offering priced below expectations.