* Brazil's real up 1.7%, but outlook bleak - economist
    * Russian rouble, S.African rand cut losses after U.S. data
    * Banco Bradesco rallies after Q3 beat
    * Argentine cenbank advises against increasing dollar
reserves 

 (Adds comments, updates prices throughout)
    By Susan Mathew and Shreyashi Sanyal
    Nov 5 (Reuters) - Emerging market currencies firmed on
Friday, with Brazil's real jumping more than 1%, after strong
U.S. job numbers and positive reports on an experimental Pfizer
COVID-19 pill increased optimism about the global economic
recovery.
    Most currencies hit session highs, with those of Russia
 and South Africa erasing session losses of over
0.6% after data showed U.S. nonfarm payrolls rose by 531,000
jobs last month, compared with estimates for 450,000. 
    The unemployment rate fell to 4.6% from 4.8% in September.

    Most Latin American currencies also firmed, with Mexico's
peso rising 1%, putting MSCI's index of EM currencies
 on track to cut almost all its losses this week.
    Pfizer Inc's experimental antiviral pill for
COVID-19 was shown to cut by 89% the chances of hospitalization
or death for adults at risk of developing severe disease. This
propped up travel and tourism-related stocks globally.
 
    Riskier currencies thrive on U.S. rates staying low as they
benefit from the interest rate differential that increases their
appeal for so-called carry trade, in which investors borrow in a
low-yielding currency to invest in higher-yielding assets.
    Brazil's real led gains in Latin America and was on
course to end the week almost 2.2% higher. But in Brazil the
outlook for financial markets looks bleak, Capital Economics
said in a note to clients. 
    "We don't think a rebound in Brazil's financial markets is
imminent, as we doubt the headwinds facing them are likely to go
away any time soon," they said. 
    These included monetary policy being tightened at the risk
of economic growth, slowing economic growth in export
destination China, and mounting political and fiscal concerns,
they added.
    Brazil also recently opened the door to a one-off breach of
a constitutional spending cap to pay for a bigger welfare
program proposed by President Jair Bolsonaro.
    But analysts at Credit Suisse said the nearly 100 billion
reais in budget funds to be freed up are essential for the
government to be able to create the Auxilio Brasil — the social
program that will replace the Bolsa-Familia.
    "If rejected, the government can extend the emergency aid
paid to 39 million people since the beginning of the pandemic,
using extraordinary credit," they said. 
    Sao Paulo-listed stocks gained 1.3% to rise from
one-year lows hit last session. Banco Bradesco was
the top gainer, up 5% after raising its outlook for lending and
fees after its quarterly profits topped estimates.
 
    In Argentina, the central bank said it had ordered local
financial institutions not to increase the amount of reserves
held in foreign currencies this month, amid foreign exchange
rate uncertainty ahead of Nov. 14 congressional elections.

    Peru's sol rose from three-week lows after Congress
on Thursday confirmed a new moderate left Cabinet, while
Colombia's peso hit lows not seen since August despite an
upgrade to its economic growth forecast by the finance ministry.

    
    Key Latin American stock indexes and currencies at 1915 GMT:
    
           Stock indexes                    Latest    Daily %
                                                      change
 MSCI Emerging Markets                       1265.39    -0.24
 MSCI LatAm                                  2159.27     1.59
 Brazil Bovespa                            104785.82     1.33
 Mexico IPC                                 52017.84     0.28
 Chile IPSA                                  4387.36    -1.92
 Argentina MerVal                           92406.17    1.258
 Colombia COLCAP                             1387.57    -0.33
                                                             
               Currencies                   Latest    Daily %
                                                      change
 Brazil real                                  5.5166     1.65
 Mexico peso                                 20.3288     1.03
 Chile peso                                    811.8     0.27
 Colombia peso                               3870.03    -0.01
 Peru sol                                     3.9996     0.09
 Argentina peso (interbank)                  99.9400     0.03
                                                      
 Argentina peso (parallel)                       196     1.53
                                                      
 
 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru;
Editing by Steve Orlofsky and Jan Harvey)