* Latam FX heads for weekly losses * Limited upside seen for Mexico"s peso - analyst * Chile"s peso down over 4% this week on Escondida strike fears (Adds graphic, updates prices) By Susan Mathew and Ambar Warrick Aug 6 (Reuters) - Most Latin American currencies tumbled on Friday as strong U.S. jobs data spurred fears of early policy tightening by the Federal Reserve, while concerns over a strike at a major copper mine saw Chile"s peso set for its worst week in nearly a decade. The peso sank 1.3% to its lowest in more than nine months as the union representing workers at Chile"s Escondida copper mine, the world"s largest, instructed its members to prepare for a strike due to slow progress in contract talks with owner BHP Group. The currency was set for a weekly loss of around 4.2%, its worst since Sept. 2011, as the news reminded investors a historic strike in 2017, which had dented Chile"s economic growth and disrupted global copper supplies. Fears of a strike also offset data showing inflation rose in July, indicating that the Chilean economy was heating up after a COVID-induced lull. The peso was the worst performing emerging market currency for the week. Other Latin American (Latam) currencies also dropped for the week, with losses deepening on Friday as the dollar rallied on strong payrolls data. Brazil"s real swung wildly as investors weighed more interest hikes against political ructions ahead of elections next year. The currency is set to mark its third straight week in the red. A Brazilian congressional committee on Thursday voted against a constitutional amendment to adopt printed ballots, in a major defeat for far-right President Jair Bolsonaro, whose popularity has taken a dive. The Mexican peso fell 0.8% and was set to lose nearly 1% this week. "With increasing (coronavirus) infection figures, concerns are likely to grow in the future that renewed restrictions could slow down the economic recovery (in Mexico) and thus also the central bank"s actions," Commerzbank analysts said in a note. "Against this backdrop and in view of global risks, we continue to see only limited MXN recovery potential." Among stocks, Brazilian retailer Lojas Americanas looked to snap a three-day winning streak after it said it had "preliminary contact" with apparel retailer Marisa Lojas , spurring bets for an offer. Most Latam stock indexes fell, joining a broader sell-off in emerging markets as the U.S. payrolls data triggered a mass exit from risk-sensitive assets. In bonds, JPMorgan has turned net bullish on hard-currency emerging market sovereign and semi-sovereign debt by going overweight on the EMBI Global Diversified index, the investment bank said. Key Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1291.69 -0.65 MSCI LatAm 2491.40 -0.88 Brazil Bovespa 122737.68 0.91 Mexico IPC 51257.49 0.24 Chile IPSA 4276.02 0.84 Argentina MerVal 66093.49 -0.065 Colombia COLCAP 1225.75 -0.13 Currencies Latest Daily % change Brazil real 5.2427 -0.51 Mexico peso 20.0722 -0.79 Chile peso 787.69 -1.29 Colombia peso 3954.6 -1.03 Peru sol 4.0868 -0.58 Argentina peso 96.9000 -0.01 (interbank) (Reporting by Susan Mathew and Ambar Warrick in Bengaluru; editing by Jonathan Oatis and Marguerita Choy) Our Standards: The Thomson Reuters Trust Principles.