* MSCI LatAm index down 1 pct on day, up 0.85 pct on week

* Mexico cuts rates by 75 bps; peso and stocks gain

* Brazil cuts taxes on appliances to support economy

By Walter Brandimarte

NEW YORK, April 17 (Reuters) - Latin American financial
markets fell on Friday as investors pocketed part of recent
gains, but stocks still recorded their sixth consecutive week
of gains.

Mexican stocks and currency bucked the regional trend,
closing with modest gains after the central bank cut interest
rates by 75 basis points. The move was interpreted by markets
as a sign that the government is committed to fighting the
sharp economic slowdown plaguing the country.

The MSCI stock index for Latin America .MILA00000PUS
closed 0.99 percent lower on Friday, but still rose 0.85
percent for the week in a sixth straight week of gains.

"The economic outlook has improved, but some investors are
asking themselves if there is further room for gains," said
Tadeu Martins, an analyst with Planner brokerage in Sao Paulo.

The benchmark Bovespa stock index .BVSP fell 0.54
percent, even as the government announced three-month tax
breaks for a range of domestic appliances and construction
materials in an attempt to lift the economy. [ID:nN17324873]

Chile's blue-chip IPSA index .IPSA declined 0.35 percent,
while Colombia's IGBD index .IGBC dropped 0.48 percent.

In Mexico, however, the IPC stock index .MXX rose 0.21
percent after the central bank reduced its key interest rate to
6.0 percent, suggesting more rate cuts are on the way.
[ID:nN17284756]

The Mexican peso was also supported by the decision,
finishing 0.13 percent stronger at 13.108 per dollar at the
central bank's final reference.

Gains in Mexican markets moderated after the government
said industrial output slid 13.2 percent in February
year-on-year, its fastest pace since 1995. [ID:nN17351340]

Most Latin American currencies closed with losses. The
Brazilian real (BRBY: Quote, Profile, Research) lost 0.73 percent to 2.193 per dollar,
and the Chilean peso CLP=CL weakened 0.52 percent to 580.00
per greenback.

Emerging market debt prices fell, with the Brazilian
benchmark 2040 global bond BRAGLB40=RR declining half a point
in price to bid 128.500. But they still outperformed U.S.
Treasuries, prompting yield spreads between the two asset
classes to tighten 11 basis points to 543 basis points,
according to the JPMorgan EMBI+ index 11EMJ.
(Additional reporting by Aluisio Alves in Sao Paulo; Editing
by Leslie Adler)