(Updates prices) By Bruno Federowski BRASILIA, April 6 (Reuters) - Latin American currencies weakened on Friday after China fought back against a new U.S. threat to increase tariffs on Chinese goods. China warned it was fully prepared to respond with a "fierce counter strike" of fresh trade measures if the United States follows through on President Donald Trump's threat to slap tariffs on an additional $100 billion in Chinese goods. The warning came after Trump upped the ante on Thursday by ordering U.S. officials to identify extra tariffs, escalating a high-stakes confrontation with potentially damaging consequences for the world's two biggest economies. "It's still a battle of words at this time, but that is enough to pull down prices," Guide Investimentos analysts wrote in a client note. The currencies of Brazil, Mexico, Chile and Peru were down between about 0.1 and 0.9 percent in afternoon trading, despite data showing the U.S. economy in March created the fewest jobs in six months. A weak labor market could drive the Federal Reserve to hike interest rates at a slower pace than expected in coming months, potentially boosting the allure of emerging market assets. Stock markets were also down across the region due to global risk aversion, with MSCI's Latin American index down as much as 1.75 percent, its biggest daily loss in two months. By mid-afternoon, the index had pared its losses to 1.51 percent. Brazil's benchmark stock index and Argentina's MerVal index led the declines, both down 0.81 percent in afternoon trading. Key Latin American stock indexes and currencies at 1940 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 1,160.98 -0.47 0.69 MSCI LatAm 3,028.43 -1.51 8.73 Brazil Bovespa 84,522.92 -0.81 10.63 Mexico IPC 47,907.83 -0.09 -2.93 Chile IPSA 5,583.15 -0.43 0.33 Chile IGPA 27,973.86 -0.31 -0.02 Argentina MerVal 31,609.38 -0.81 5.13 Colombia IGBC 11,798.06 -0.39 3.76 Venezuela IBC 6,010.85 2.59 375.87 Currencies Latest Daily YTD pct pct change change Brazil real 3.3631 -0.65 -1.48 Mexico peso 18.3000 -0.52 7.64 Chile peso 604.1 -0.09 1.75 Colombia peso 2,791.2 -0.04 6.84 Peru sol 3.238 -0.37 -0.03 Argentina peso (interbank) 20.1600 0.19 -7.74 Argentina peso (parallel 20.59 -1.02 -6.61 (Reporting by Bruno Federowski Editing by James Dalgleish)