In Brazil, the real BRL= slipped 0.3%, while stocks were trading 0.8% higher after a delayed market opening on Friday.
The gains were led by a 13% jump in lender Santander Brasil SANB11.SA after its parent Santander SAN.MC offered to acquire the remaining stake it does not already own in the Brazilian unit.
Brazil's overall budget deficit widened to nearly 10% of gross domestic product (GDP) in the 12 months through June, data showed, as higher interest costs weighed on the public finances.
"A deterioration on the fiscal (position) means that there could be a delay in rates coming down, which means that it's likely to be a headwind to growth," said Rohit Chopra, portfolio manager at Lazard Asset Management.
In a potential boost for Brazil's left-wing party and President Luiz Inácio Lula da Silva, the country's largest right-wing party said on Friday it would stay neutral in October's presidential election.
Meanwhile, in Argentina, President Javier Milei unveiled a bill to reform the central bank's charter on Thursday, to strengthen the bank's independence and restrict its ability to finance government spending.
The Argentine peso ARS=RASL gained 0.3%, while its equities .MERV were flat.
Oil prices gained 1.1% as traders assessed shipping disruptions in the Strait of Hormuz and attacks in the Red Sea by Iran-backed Houthis. O/R
Meanwhile, Chile's copper output rose in June, while manufacturing production fell 3.2%. The Andean nation is the world's largest copper producer.
The Chilean peso CLP= edged 0.3% lower, while its stocks .SPIPSA fell 0.6%, tracking lower copper prices.
Unemployment in Chile was recorded at 9.4% in the second quarter, data showed, while Colombia's urban jobless rate fell to 8% in June.
EEM•
