* Brazil's lower house approves tax reform bill
* Chile inflation slows further; rate cuts in sight
* Mexican inflation continues downward trend in June
* Latam FX up 0.6%, stocks jump 2%

By Ankika Biswas
       July 7 (Reuters) - Brazil's real jumped on Friday after
the lower house approved reforms to the country's complex
consumption taxes, leading gains among currencies in Latin
America that were also boosted by a weakening dollar following a
U.S. jobs report.
    The MSCI index for Latam currencies gained
0.6%, but was set for weekly losses, led by a 1.3% jump in the
Brazilian real.
    Brazil's lower house of Congress approved the main text of a
tax reform that will restructure the country's complex
consumption taxes, a step in President Luiz Inacio Lula da
Silva's plan to boost growth. The bill now heads to the Senate
for further voting.
    The changes might simplify the tax system, contributing to
improve Brazil's position as the worst among 190 countries in
terms of "time spent to pay tax, potentially boosting the
competitiveness, consequently the long-term economic growth,"
Citi analysts wrote.
    The dollar fell following lower-than-expected job gains in
June, even as strong wage growth pointed to a still resilient
labor market that likely ensures the Federal Reserve will resume
hiking rates later this month.
    Meanwhile, data showed Mexico's annual inflation decelerated
in June for a fifth consecutive month, continuing a downward
trend spurred by a long cycle of rate hikes.
    On Thursday, minutes from the Bank of Mexico's last policy
meeting showed its benchmark interest rate was likely to remain
on hold for an "extended period," as inflation remains
"complex." 
    Higher crude oil prices boosted the Mexican peso by
0.5% and top exporter Colombia's peso by 0.4%.
    The government on Thursday said Colombia's crude production
in May rose 3.59% year-on-year.
    A Reuters poll revealed Colombia's inflation was expected to
have fallen in June, and analysts forecast the trend would
strengthen through the rest of 2023, allowing for interest rate
stability.
    Data showed Chile's annual inflation touched a 1-1/2-year
low in June, fuelling expectations that the central bank will
soon start cutting interest rates. 
    Bucking the trend, the Chilean peso lost 0.4% as an
improved risk appetite prompted a 1.3% gain in the benchmark
stock index S&P IPSA. 
    Following the data, Goldman Sachs analysts expect Chile's
central bank to cut its policy rate by 50 basis points in July
and in September each.     
    A Reuters poll showed Argentina has negative net foreign
currency reserves of $4.5 billion to $7 billion, underscoring
the acute shortage of hard currency that hinders the country's
ability to pay its debts.
    The Argentinian peso was up 1% in black market
trading.
    The MSCI gauge for Latam stocks jumped 2%,
led by Chile's S&P IPSA and Brazil's Bovespa, up 1.3%.
    
    Key Latin American stock indexes and currencies at 1450 GMT:
    
    
     Stock indexes              Latest     Daily %
                                           change
 MSCI Emerging Markets            981.58      -0.32
                                          
 MSCI LatAm                      2448.98       2.04
                                          
 Brazil Bovespa                118946.59        1.3
                                          
 Mexico IPC                     53922.70       0.96
                                          
 Chile IPSA                      5886.61       1.63
                                          
 Argentina MerVal              422466.85      1.178
                                          
 Colombia COLCAP                 1118.62       0.32
                                          
                                                   
        Currencies              Latest     Daily %
                                           change
 Brazil real                      4.8648       1.31
                                          
 Mexico peso                     17.1229       0.61
                                          
 Chile peso                        806.2      -0.50
                                          
 Colombia peso                   4181.74       1.09
 Peru sol                         3.6413      -0.17
                                          
 Argentina peso (interbank)     260.8000      -0.15
                                          
 Argentina peso (parallel)           486       1.03
                                          
 
 (Reporting by Ankika Biswas in Bengaluru)